At SGS, strong governance structures underpin the delivery of our sustainability strategy.
The Board of Directors is responsible for the ultimate direction of the Group and reviews sustainability risks as part of its annual risk review. The Board is also responsible for SGS’s top-level strategy, mission and values.
The duties of the Chairman of the Board of Directors (a non-executive role) include approving top-level strategy and policies (including those that affect sustainability risks), determining the remuneration of the Chief Executive Officer (CEO) and setting our mission and values.
Roles and Responsibilities
The Board of Directors reviews sustainability risks as part of its annual risk review. The Operations Council oversees and approves our sustainability strategy, which is developed by the Sustainability Steering Committee and coordinated day-to-day by the Corporate Sustainability Team.
Other roles include:
- The Audit Committee: reviews risk management, regulatory compliance and internal controls
- The Professional Conduct Committee: responsible for ensuring the implementation of our professional conduct policies and for advising management on all issues of business ethics
- The Group Chief Compliance Officer: responsible for implementing procedures governing ethical behavior and conducting investigations on alleged staff misconduct
- The Nomination and Remuneration Committee: reviews the compensation of the Operations Council members (excluding the CEO)
- The Operations Council (OC): responsible for the operational management of the Group and approval and implementation of business strategy, including approving sustainability policies, strategies and targets. The OC is chaired by the CEO, who has ultimate responsibility for our operational integrity and sustainability performance
Sustainability Steering Committee
The Sustainability Steering Committee supports the Operations Council and meets twice a year to develop SGS’s sustainability strategy, review our management approach and performance and agree on core programs and targets. Chaired by the CEO, the Sustainability Steering Committee comprises 14 Chief Operating Officers, Executive Vice Presidents and Senior Vice Presidents representing the full breadth of the SGS Group in terms of regions, functions and services.
Corporate Sustainability Team
Led by the Group Vice President, Corporate Communications and Sustainability – who reports to the CEO – the Corporate Sustainability Team consults with the Sustainability Steering Committee to support the development of the Group’s sustainability strategy and propose appropriate approaches and targets.
The Corporate Sustainability Team also oversees our sustainability management system, materiality processes and other related projects on a day-to-day basis. Measuring and reporting on sustainability performance through the Green Book, liaising with external stakeholders and supporting affiliates in improving performance are also critical tasks for the department.
The team ensures that sustainability is embedded throughout the SGS Group and that each function operates in line with SGS’s Integrated Leadership Model. This is partially achieved through the supervision, co-leadership and coordination of various sustainability-related projects undertaken by these functions.
At a local level, initiatives are executed by our affiliates. Sustainability ambassadors are charged with overseeing this in our largest countries of operation.
SGS Annual Report 2018
Our general governance structures and processes are described in more detail in the SGS Annual Report.