Page 53 - CMA Journal (Nov-Dec 2025)

Focus Section

Sr. Governance Area Metric Unit / Baseline Target Target Remarks / Ac on Plan
Indicator (Current) (Future) Year
1 Board Composi on % of independent directors on the % 55% ≥ 60% 2025 Strengthen governance
& Diversity board independence
% of female board members % 25% 40% 2026 Implement board diversity
policy
Average board tenure Years 8 ≤ 6 2027 Replenishment board
membership regularly
2 Ethics & An - % of employees trained on Code of % 80% 95% 2025 Annual ethics training
Corrup on Conduct
Number of corrup on cases Count 2 0 2025 Zero-tolerance policy
reported
Whistleblower mechanism in place Yes/No No Yes 2025 Launch and monitor hotline
3 Risk Management % of business units with ERM system % 50% 100% 2025 Full ERM integra on
& Compliance
Number of compliance audits Count 4 6 2026 Strengthen compliance
conducted monitoring
Major compliance breaches Count 1 0 2025 Regular internal reviews
4 Transparency & Sustainability report published Yes/No Yes Annual Ongoing Aligned with GRI/ISSB
Repor ng
% of ESG disclosures externally % 0% 100% 2027 Third-party verifica on
assured
Stakeholder complaints resolved % 70% 100% 2026 Improve grievance handling
Data breaches reported Count 1 0 2025 Upgrade IT security
5 Data Privacy & Employees trained in data privacy % 60% 100% 2025 Mandatory cybersecurity
Cybersecurity training
% of IT budget for cybersecurity % 10% 20% 2026 Increase cybersecurity
investment
6 Execu ve % of execu ve bonuses ed to ESG % 10% 30% 2025 Link incen ves to ESG KPIs
Compensa on &
ESG Integra on
CEO-to-employee pay ra o Ra o 70:01:00 ≤ 50:1 2027 Ensure equitable pay structure
7 Legal & Regulatory Regulatory fines incurred Count / $20,000 $0 2025 Strengthen compliance training
Compliance $
Opera ons compliant with ISO % 80% 100% 2026 Maintain cer fica ons
standards

b) Strategy: A comprehensive Action Plan to achieve • Social Avoidance – e.g. not sourcing raw materials
specific long-term goals or a set of objectives from suppliers that use child labour or forced labour;
through clear direction, by setting priorities and avoiding partnerships with businesses that have a
effectively allocating resources. The company record of human rights violations; and choosing not
develops its strategy using a range of tools, including to operate in regions with unstable social or political
Vision, Mission, Goals, SWOT analysis, resource systems where community harm is likely.
allocation, implementation of the Action Plan,
• Governance Avoidance – e.g. avoiding involvement
monitoring and control, and adjustments toward the
with companies that lack transparency or ethical
final goal. The company may adopt one or more
governance; not participating in markets with
strategies, such as avoiding, mitigation, transfer,
corruption risks or weak legal protections; and
acceptance, compliance and governance.
choosing not to engage in tax evasion practices,
Let us discuss the Avoiding strategy in detail, while the even if legally permissible in some jurisdictions.
other strategies are addressed within specific limits.
• Operational Avoidance – e.g. avoiding over-
Avoiding Strategies for sustainability are approaches
extraction of natural resources to prevent future
where an organization, business, or individual
scarcity; not engaging in projects with high carbon
intentionally chooses not to engage in certain practices,
footprints when low-carbon alternatives exist; and
activities, or investments such as:
refusing to use hazardous chemicals in manufactur-
• Environmental Avoidance – e.g. avoiding ing processes.
investment in a coal-fired power plants or other
• Financial / Investment Avoidance – e.g. divesting
highly polluted industries; avoiding purchase of
from fossil fuels, tobacco or arms industries; avoiding
bricks-manufactured at traditional kilns instead
investments in companies that do not meet ESG
shifting to cemented blocks; and avoiding
standards; and avoiding investment in business doing
construction in environmentally sensitive areas
MLM – Pyramids like schemes.
(wetlands, forests, habitats).
ICMA’s Chartered Management Accountant, Nov-Dec 2025 51