OUR GOVERNANCE:
COMPREHENSIVE OVERSIGHT OF STRATEGY, PERFORMANCE AND REPORTING
Consideration of additional Board Committees in FY2024
In aligning to King IV principles, the Fund considered the formalisation of a Governance and Nomination Committee during the reporting period, and it is confident that the current governance structures have sufficient oversight of the following responsibilities:
| Responsibilities | NSSF Board Committee oversight | |
|---|---|---|
| Social and economic development | ||
| Ethics | ||
| Environment | ||
| Stakeholder engagement and management | ||
| Sustainability and community development | ||
Evaluation and performance of the Board
The Board is committed to continuous improvement and evaluates its performance. The Charter stipulates that the Board of Directors will conduct evaluations to determine whether the Board, its committees and members are functioning effectively in terms of discharging their mandate as per the Board Charter and in line with leading practices on corporate governance. The Board evaluates its performance through a combination of both internal peer and external facilitated assessments.
In the year under review, the Board evaluation was conducted by the ICGU Institute of Corporate Governance and internally, performance reviews were conducted by the Board Chairperson and Committee Chairpersons. The evaluation report highlighted the Fund's robust governance framework, effective corporate flow and communication, visionary leadership by the Board, and a strong understanding of the Fund's vision, mission, and values, as well as proper meeting management procedures. The evaluators recommended the following areas for improvement:
Recommendation
Status
Succession planning should be reviewed periodically and should provide both succession in emergency situations and succession over the long term.
An external consultant has been appointed to advise further requirements over and above what management are proposing.
The Board to institute a code of ethics and policy to address violation of the code.
Done.
The need for periodic evaluation at least twice in a board tenure and addressing shortfalls identified.
Evaluations will be undertaken at least once every year.
There is need for a solid meeting between the Internal Auditor and the Audit and Risk Assurance Committee without management.
Implemented.
Need for a Governance and Nominations Committee.
Discussions are still ongoing regarding establishment of an independent Governance Committee to oversee succession planning of the Board and ESG issues.
Performance and reporting
Strategy
The Board is responsible for guiding the strategic direction of the Fund and has established a robust governance framework to empower management to meet its objectives, in line with the strategic plan set for completion by 2035.
The Fund's strategy is clearly articulated and includes a suite of Key Performance Indicators (KPIs) focused on long-term value creation.
To demonstrate our strong commitment to sustainability and responsible investment, we have formally integrated sustainability drivers into our strategy, highlighting our dedication to achieving our selected Sustainable Development Goals (SDGs) and making a significant environmental, social, and governance (ESG) impact.
Key elements of our strategic approach include:
The Board regularly evaluates the Fund's progress against the established strategic targets and the overarching strategic vision, ensuring ongoing alignment and responsiveness to emerging challenges and opportunities. Read more on our strategy and performance against strategy.
A NEW DAY - CREATING SHARED VALUE FOR SUSTAINABLE GROWTH