Mumbai: HDFC Chair Deepak Parekh has warned the company that shareholder activism on environmental, social and governance issues (ESG) is here to remain and the company’s board needs to know how to manage it.
According to Parekh, there is a climate change in the meeting room.
“ESG and the strategy driven by the aim is expectations by all investors today.
This includes various problems of diversity, inclusion, climate risk, emissions, supply chains, labor rights, anti-corruption, among several other.
There are changes in the sea In terms of increasing non-financial disclosure by the company and a larger board supervision of this parameter was called for, “Parekh said.
He spoke at 21 ICSI National Awards for excellence in corporate governance.
In his speech, he said that the company’s secretary played the role of the council council advisor and must be part of the culture of ‘speaking’, overseeing all company activities and still participating in technology.
“The board must be prepared to face an increase in demands from shareholders – whether it says on salary, say about the climate, the choice of directors, vote for resolution, among others, shareholder activism is here to remain and up to the collective policy of the board how this is managed by well.
“He said that if the structure of internal governance is strong, key executive incentives make sense and the company is sensitive to their stakeholders, they tend to experience waters that have problems with shareholder activism.
He noted that the new development financing institution founded by the government to fund infrastructure has a variety of protection built into actions to protect employees and directors against actions taken in good faith when issuing their duties.
However, he said that at the system level there was not enough checks and balances to ensure protection against bonafid transactions.