governancerapport

A governancerapport is a formal document that describes how an organization is governed. It covers the system of rules, practices, and processes by which the entity is directed and controlled, including the roles of the board, management, and committees. It may be a standalone document or part of the annual report or corporate governance section.

Key elements typically include: board composition and independence; governance structure; responsibilities of the board and executive management; committees such as audit, risk, nomination, remuneration; governance policies (ethics, conflicts of interest, anti-corruption). It also describes risk management and internal control frameworks, compliance with laws and codes, and the process for evaluating governance effectiveness.

The document explains stakeholder engagement, transparency, and accountability to shareholders, employees, customers, regulators, and the public. It may include key performance indicators related to governance, such as frequency of board meetings, attendance, evaluation results, and changes in governance practices. In some jurisdictions it aligns with or references governance codes (for example, the Dutch Corporate Governance Code) and may require third-party assurance.

Process and publication: typically prepared by the governance function or company secretary, reviewed by the board, and approved before publication. It is often updated annually, with interim updates in response to material changes. It may be integrated with the annual report or published as a separate document, and sometimes subject to external assurance.

Purpose: to provide stakeholders with a clear view of the way governance supports strategy, risk management, and value creation, and to enable accountability and informed decision making.