We have worked hard to “operationalize” sustainability at GE. It is embedded in core initiatives such as ecomagination, healthymagination and our governance processes led by teams with deep subject matter expertise.
In order to improve coordination, in 2012, GE formed a Sustainability Steering Committee of leaders from human resources, environment, health and safety (EHS), communications, government and public policy, investor relations, ecomagination, the GE Foundation and the SEC reporting team to guide our strategy and this website. Chaired by the Vice President of EHS, the group meets periodically to review stakeholder feedback, social trends and our reporting framework.
These are then reflected back into our ongoing work programs and discussed with GE’s executive management as needed. The Policy Compliance Review Board is a management-level committee that further assists in assessing and mitigating risk. Chaired by the Company’s general counsel, the Policy Compliance Review Board includes the Chief Financial Officer and other senior-level functional leaders. It has principal responsibility for monitoring compliance matters across the Company.
The GE Board’s risk oversight process builds upon management’s risk assessment and mitigation processes, which include standardized reviews of long-term strategic and operational planning; executive development and evaluation; code of conduct compliance under the Company’s The Spirit & The Letter; regulatory compliance; health, safety and environmental compliance; financial reporting and controllership; and information technology and security.
Four Board committees are briefed on sustainability related issues as part of GE’s overall risk management processes:
- The Risk Committee oversees GE’s four to five most critical enterprise risks and how management is mitigating these risks.
- The Audit Committee, in coordination with the Risk Committee, discusses with management the Company’s risk assessment and risk management practices, and when reviewing and approving the annual audit plan for the internal audit functions, prioritizes audit focus areas based on their potential risk to the Company. The Audit Committee also monitors ongoing compliance issues and matters, and also semi-annually conducts an assessment of compliance issues and programs.
- The Management Development and Compensation Committee oversees the risk management associated with management resources, structure, succession planning, management development and selection processes, and includes separate reviews of incentive compensation arrangements.
- The Governance and Public Affairs Committee oversees risk related to the Company’s governance structure and processes and risks arising from related-person transactions, reviews and discusses with management risks related to GE’s public policy initiatives and activities, and monitors the Company’s environmental, health and safety compliance and related risks.
For more information on GE’s management practices, please see our Annual Report.