Empowering sustainability: Our sustainability governance framework at a glance

Board of Directors (BoD)

• Provides oversight for the sustainability strategy and approves the sustainability ambition level, emissions reductions targets, and necessary guidelines and policies.
• Delegates the strategic implementation to the ELT, the Sustainability SteerCo, and the Sustainability Team.
• Reviews and approves the outcome of the DMA, material topics, and the disclosures of the annual sustainability report.
• Receives updates on key sustainability developments at least twice a year.
• Receives updates on key sustainability risks as part of the annual update of SMG’s risk landscape.

Risk and Audit Committee (RAC)

• Acts as a preparatory committee focusing, among other areas, on audit, compliance, general finance-related topics, and risk management, including sustainability-related risks.

Executive Leadership Team (ELT)

• Responsible for embedding the sustainability strategy into operational practices, considering the Sustainability SteerCo’s recommendations.
• Reviews and approves the outcome of the DMA and material topics.
• Delegates the detailed development and implementation of the sustainability strategy to the Sustainability Team and receives updates at least twice a year.

Sustainability Steering Committee (Sustainability SteerCo)

• Led by the Chief Corporate Officer (CCO) and Chief Financial Officer (CFO), with representation from Directors across all business units, and other internal stakeholders from key functions.
• Acts as a first panel for strategy and decisions to enhance sustainability impact and integration within the business.
• Supports the integration of sustainability initiatives throughout all levels and business units, and ensures accountability and progress on the sustainability roadmap.

Our Sustainability Team, led by the Head of Corporate Sustainability, is mandated with the development and implementation of the sustainability strategy, including risk mitigation measures and initiatives. Working with the Sustainability Reporting Manager, the team ensures accurate sustainability reporting and facilitates the Sustainability SteerCo meetings for project alignment with executive goals. To embed sustainability throughout SMG, the Sustainability Team works with external partners and engages with external stakeholders on a regular basis. Internally, the team works closely with SMG’s Sustainability Champions from different departments and business units, who drive engagement and support the implementation of the sustainability roadmap. This structure facilitates clear communication and accountability, supporting the effective integration of sustainability across all levels of the organisation.

In 2024, the highest governing bodies received not only regular information but also participated in targeted educational sessions on sustainability topics. These sessions, facilitated by an external consulting firm, covered the relevance of sustainability in the business context, with a special focus on TCFD and net-zero commitments. As part of broader efforts to build internal sustainability expertise, one ELT member also completed a multi-day Business Sustainability Programme at the University of Cambridge.

Currently, remuneration for members of the Board or management is not linked to climate-related performance metrics. As our sustainability strategy continues to evolve, we plan to regularly review the alignment between ESG objectives and incentive structures.