Beijing Enterprises Holdings Limited (BEHL) has formalised the creation of a board-level Sustainability Committee, detailing its composition, powers and responsibilities through newly approved Terms of Reference.
The committee operates under the board of directors and is mandated to guide, supervise and evaluate the group’s environmental, social and governance (ESG) strategy. Key objectives include identifying and mitigating major sustainability risks while fostering long-term, stable corporate development and social responsibility fulfilment.
Composition and Governance • Membership: Minimum of three directors, with the total number kept odd; at least one must be an independent non-executive director and at least one must possess professional experience in environment, social responsibility, corporate governance or sustainability management. • Appointment: Members are nominated by the Board’s Nomination Committee and formally approved by the Board. • Tenure: Runs concurrently with the director’s term; membership lapses automatically when a director steps down. • Secretariat: The Company Secretary serves as committee secretary and coordinates meetings and records.
Core Functions 1. Sustainability Strategy & Governance – Review and recommend sustainability strategies, medium- to long-term targets and annual sustainability reports for board approval. – Approve sustainability-related policies, annual work plans and materiality assessments, escalating issues to the board when they involve significant resource allocation or strategic impact.
2. Environmental & Social Responsibility Supervision – Oversee execution of ESG policies and targets, focusing on climate action, energy use, emissions, resource management, biodiversity, employee rights, occupational health and safety, supply chain management, data privacy, business ethics and stakeholder engagement. – Issue corrective recommendations, track follow-up and report significant findings to the board. – Monitor and advise on improvements to internal sustainability management and assessment mechanisms.
Authorities The committee can require information from internal departments, engage external experts, attend relevant meetings and conduct interviews with management to fulfil its mandate.
Meeting Procedures • Frequency: At least twice a year, with additional sessions convened when more than one-third of members agree. • Format: Physical, teleconference or video conference; written resolutions may be adopted with the same legal effect. • Quorum: More than half of members must be present; resolutions pass with a majority vote, with the chairman holding a casting vote in case of a tie.
Reporting The committee will submit an annual report of its activities and findings to the board.
Effectiveness The Terms of Reference took effect upon board approval, positioning BEHL to enhance oversight of ESG risks and opportunities across all consolidated entities.
Comments