Page 7 - Hexion Sustainability Report 2021
P. 7
Governance
Hexion’s Board of Directors continues to guide Disclosures (TCFD) as a strategic planning
strategic planning regarding Environmental, Social platform to drive a greater level of understanding
and Governance (ESG) risks and opportunities of potential climate risks and opportunities to
through quarterly discussions about various ESG support the Company’s future ESG strategy. The
special topics and progress towards goals. The Company’s strategic planning process includes:
Board’s Environmental Committee has overall • Performing an annual risk assessment, which
responsibility for the organization’s sustainability includes interviews with the SLT, the Board
efforts, vision, policy and strategy. The Chair and Audit Committee Chair (see chart);
Compensation Committee of the Hexion Holdings
• The assessment is conducted by Risk
Corporation Board of Directors sets the principles
Management, Compliance and Internal Audit;
and strategies that guide the design of our
• Top Risks are identified, and mitigation
executive compensation program, which includes
strategies are reviewed and implemented;
several Environmental Health and Safety metrics.
• The results of the assessment are presented to
In order to better understand ESG risks and
the full Board annually; and
opportunities, Hexion initiated a project in
• The Risk Committee subsequently receives an
December 2021 to educate leadership on the
update on the risks and mitigation activities.
Task Force on Climate-related Financial
Overview of Annual Risk Process:
Senior Leadership Interviews Annual Risk Assessment Survey Leadership Top Risks Survey
• Fourteen individuals including the • Conducted during April 2021 and • Conducted during April 2021.
Lead Director and Audit Committee included more than 50 questions • Approximately 20 questions were
Chair were interviewed directly by covering financial, operational, posed rating the potential impact
Internal Audit, Risk Management, strategic, external, and compliance and likelihood of each risk.
and Legal & Compliance. risks.
• Survey sent to nearly 60 members
• The Top 10 Risks were identified, • Survey sent to 345 associates with of senior leadership, with nearly 40
and their mitigation strategies will a response rate of more than 90 completed (some results included
be further reviewed. percent. via interview feedback).
• Survey participants included a
broad cross section of leaders
throughout the company.
