Comprehensive Governance Questionnaire for ESG Reporting Aligned with CSRD and SFDR

Creating a comprehensive questionnaire for an ESG report to align with the CSRD (Corporate Sustainability Reporting Directive) and SFDR (Sustainable Finance Disclosure Regulation) involves covering key governance aspects. Here is a list of 30 questions to guide your ESG reporting:

General Governance Information

Governance Policy: Does the organization have a governance policy? If so, what are its main goals and objectives?

Governance Structure: What is the structure of the organization's governance (e.g., board composition, committees)?

Regulatory Compliance: Has the organization complied with all relevant governance regulations? Have there been any violations or fines in the reporting period?

Board Composition and Function

Board Diversity: What is the composition of the board in terms of gender, age, ethnicity, and other diversity metrics?

Board Independence: What proportion of the board is independent?

Board Expertise: What expertise and skills do board members possess, particularly in relation to sustainability and ESG?

Board Committees: What board committees exist (e.g., audit, risk, sustainability), and what are their roles?

Executive Compensation

Compensation Policy: What is the organization’s policy on executive compensation?

Sustainability Incentives: Are executive compensations linked to sustainability or ESG performance? If so, how?

Compensation Disclosure: How is executive compensation disclosed to stakeholders?

Risk Management

Risk Management Framework: What is the organization’s risk management framework, and how does it integrate ESG risks?

ESG Risk Identification: How does the organization identify and assess ESG-related risks?

Risk Mitigation: What strategies are in place to mitigate identified ESG risks?

Ethics and Integrity

Code of Conduct: Does the organization have a code of conduct? If so, what are its key components?

Anti-Corruption Policies: What measures are in place to prevent corruption and bribery?

Whistleblower Protection: What mechanisms are in place for whistleblowers to report unethical behavior safely?

Transparency and Reporting

Governance Reporting: What governance information is publicly disclosed, and how is it verified?

Stakeholder Communication: How does the organization communicate governance matters to stakeholders?

Annual Reports: How is governance information presented in the organization’s annual reports?

Compliance and Accountability

Compliance Monitoring: How does the organization monitor compliance with internal and external governance standards?

Accountability Mechanisms: What mechanisms are in place to hold management and the board accountable for their actions?

Regulatory Engagement: How does the organization engage with regulatory bodies on governance issues?

Stakeholder Engagement

Stakeholder Identification: Who are the key stakeholders in the organization’s governance?

Stakeholder Involvement: How are stakeholders involved in governance-related decision-making processes?

Feedback Mechanisms: What mechanisms are in place for stakeholders to provide feedback on governance issues?

Performance Metrics and Targets

Governance KPIs: What key performance indicators (KPIs) are used to measure governance performance?

Target Setting: What are the specific governance targets, and what progress has been made towards achieving them?

Performance Improvement: What actions have been taken to improve governance performance over the reporting period?

Internal Controls

Internal Control Systems: What internal control systems are in place to ensure the integrity of financial and non-financial reporting?

Audit Functions: How are internal and external audit functions structured, and what are their roles in governance?