ESG Disclosure Among Listed Companies in Trinidad Tobago

ESG Disclosure Among Listed Companies in Trinidad & Tobago

Importance of ESGs • • • Environmental Social Governance • WHY?

Objectives of the Study 1. To improve disclosure/reporting on environmental, social and governance issues (ESGs) 2. To assess the extent of compliance with the T&T Corporate Governance Code 3. To promote disclosure practices to meet international trends and expectations 4. To enhance investor and shareholder confidence in general

Evaluation Method Annual Report as Source document to: • Assess each company against 27 internationally recognized disclosure factors • Assess each company against the T&T Corporate Governance Code

27 International Variables CEO-Chair Split Number of Board & Committee Meetings Audit Committee Independence Audit Committee Report Frequency of Re-election Independence Disclosure HR Committee Independence Governance Committee Report Attendance Board Independence Nominating Committee Independence Compensation Committee Report Director Bios Formal Director Training Director Shareholdings Nominating Committee Report Skills Matrix Board Evaluations Director Restricted Shares & Options Executive Compensation Disclosed Formal Director Orientation Director Evaluations Director Compensation Disclosed Social Initiatives Director Fee Breakdown Environmental Initiatives Governance Report

Percentage of Female Directors 60% Angostura 45% Scotiabank 44% NEL 44% JMMB 43% Unilever NFM 38% WITCO 38% First Citizens 36% Guardian Media 36% Grace. Kennedy 33% NCB Financial 33% 30% CIBC Agostini 27% Republic Bank 27% TCL 25% 22% One Caribbean Sagicor 17% ANSA Mc. AL 15% 14% Prestige Holdings Massy 8% ANSA Merchant Bank 0% Berger 0% Guardian Holdings 0% L. J. Williams 0% NGL 0% PLIPDECO 0% Readymix 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Exemplars 1. Grace Kennedy ranked highest on international disclosure factors (26/27) 2. First Citizens ranked highest for compliance with T&T CG Code (22/23) 3. Unilever had the largest improvement score for both the international disclosure factors (12 pts) and compliance to the T&T CG Code (10 pts)

Exemplars: Gender Diversity on Boards • Angostura (60% female directors) • Companies with 40% or more Female directors – NEL – JMMB – Scotia Bank – Unilever

Exemplars: Environmental & Social Disclosure Grace Kennedy and NCB Financial both had extensive sections in their annual reports ANSA Mc. Al presented what philanthropic activity it did for each month of the year

Key Observations 1. Higher value being placed on governance related issues among most companies 2. Level of disclosure is trending towards international practice 3. No standardized format exist for Annual Reports 4. Uncertainty on where ESG issues ought to be reported – Annual Reports or elsewhere (websites) 5. Most companies are yet to do board evaluations 6. Skills / competencies of directors are not adequately disclosed. 7. Majority of Companies disclose Social & Environmental related activities

Collaborate Next Steps • Regulators to provide Guidance on the voluntary reporting of ESGs • CCGI to revise/update TT CG Code Guide • Companies international expectations in meeting / TT Code