The Clorox Company’s Commitment to Strong Corporate Governance

Rhea-AI Summary

Clorox Company emphasizes strong corporate governance practices to maintain trust and create long-term shareholder value. The board of directors showcases diverse skills and oversight of the IGNITE strategy, ensuring transparency, robust risk management, and stakeholder engagement.

Insights

Corporate Governance Expert

The significance of corporate governance in maintaining investor confidence and fostering long-term shareholder value is a critical aspect of a company's success. The Clorox Company's emphasis on diverse and skilled board composition aligns with contemporary governance models that prioritize varied perspectives and experiences to effectively oversee company strategies, such as the IGNITE initiative. Regular board refreshment can prevent stagnation and ensure the board remains aligned with the evolving market and company needs.

Moreover, shareholder-friendly practices like the nomination rights and the ability to call a special meeting empower investors, potentially leading to a more engaged and active shareholder base. This could result in a more dynamic corporate environment where management is held accountable and strategic decisions are closely aligned with shareholder interests. The incorporation of a third-party facilitator in the board evaluation process suggests a commitment to unbiased assessment, which could enhance the overall effectiveness of the board.

Environmental, Social and Governance (ESG) Analyst

Clorox's creation and expansion of its ESG Data Hub demonstrates the company's proactive approach to transparency and accountability in its environmental, social and governance practices. By aligning disclosures with stakeholder-preferred reporting frameworks, Clorox is addressing the growing demand for ESG information, which is increasingly influencing investment decisions. A central repository for key ESG information can serve as a valuable resource for investors who are looking to assess the company's performance and risks related to these non-financial factors.

Stakeholders' consideration and the subsequent enhancements to governance processes indicate that Clorox is responsive to external feedback, which can be a positive indicator of management's willingness to adapt and improve. This responsiveness to stakeholder feedback could potentially lead to enhanced company reputation and could mitigate risks associated with governance and sustainability issues.

NORTHAMPTON, MA / ACCESSWIRE / February 29, 2024 / The Clorox Company

Strong corporate governance is foundational to all that we do. It helps maintain trust in our company and brands, enabling us to create long-term shareholder value.

This strong governance begins at the top. Our board of directors applies their strong, diverse and relevant skills to provide meaningful oversight of the company and its execution of the IGNITE strategy, demonstrating active engagement with the issues most important to investors.

Our governance practices extend to transparency in our disclosures, robust board risk management oversight mechanisms, board oversight of human capital matters and corporate culture, as well as a commitment to hearing perspectives from our varied stakeholders. The following are some examples of strong governance practices at Clorox:

• Regular board refreshment, with average tenure of approximately five years. We seek diverse skills, backgrounds and experiences that support the company's strategy, which also results in a diverse board mix of both longer-tenured and newer directors.
• Strong shareholder-friendly practices, including the right for shareholders to nominate candidates and the right to call a special meeting, assuming certain ownership thresholds and other qualifications are met.
• Consideration of stakeholder feedback, with subsequent enhancements to our governance processes, including public disclosure in alignment with stakeholder-preferred reporting frameworks, incorporation of a third-party facilitator into our board evaluation process, and creation and expansion of our ESG Data Hub, the central repository for key information about our ESG performance and reporting approach.
• Active board oversight of human capital and culture matters, including through engagements with employees via site visits and town halls; oversight of engagement survey results and follow-up actions; and regular updates on ESG activities in town halls, community events and companywide communications.
• Annual mandatory training for Clorox teammates on our Clorox Code of Conduct, which outlines our expectations in areas.

Our New ESG Governance & Structure

In fiscal 2023, we created a new internal ESG governance structure and hired our first full-time vice president and head of sustainability to lead ESG work. The governance structure starts at the top with oversight from our board and senior management team. Our ESG Executive Committee determines strategic considerations to ensure we continue our ESG leadership, while the ESG Steering Team, led by our head of sustainability, drives sustainability initiatives, including reporting and executing against our ambitious IGNITE ESG goals. An ESG Disclosure Committee also reviews key ESG reporting, as well as processes, data controls and systems to assist the company in providing transparent and accurate disclosures and satisfying regulatory reporting requirements.

Our ESG governance structure and related processes include a system of mechanisms to further integrate our IGNITE ESG goals into our business units, allocate resources and assign decision-making authority and accountability. This enables us to better set ESG targets and measure performance. The structure also helps identify and mitigate risks associated with ESG issues such as resource dependency, resource scarcity and physical business disruption.

Additional fiscal year 2023 highlights include:

• Published our Climate Action Plan this fiscal year, disclosing progress against our science-based targets for scope 3 emissions (categories 1 and 11) in our annual report, and disclosing all scope 3 categories relevant to our business, on our ESG Data Hub.
• In anticipation of new disclosure regulations, we continued to strengthen our ESG data controls for priority metrics by implementing a formal ESG certification process, strengthening standard operating procedures and enhancing formal review checklists.
• Enhancing protocols and processes for data privacy and security to reduce risk and maintain consumers' trust.

Even as the external environment is constantly evolving, we're committed to continuously evaluating our approach to governance as we drive toward our IGNITE goals and strive to achieve our integrated ESG ambitions.

View the full 2023 Annual Report.

View additional multimedia and more ESG storytelling from The Clorox Company on 3blmedia.com.

Contact Info:
Spokesperson: The Clorox Company
Website: https://www.3blmedia.com/profiles/clorox-company
Email: info@3blmedia.com

SOURCE: The Clorox Company

View the original press release on accesswire.com

FAQ

What is Clorox Company's approach to corporate governance?

Clorox Company prioritizes strong corporate governance to maintain trust and create long-term shareholder value.

How does Clorox Company ensure transparency in its disclosures?

Clorox Company practices transparency in its disclosures to provide meaningful oversight and engage with investors.

What practices does Clorox Company follow for board refreshment?

Clorox Company regularly refreshes its board with diverse skills and experiences, maintaining an average tenure of approximately five years.

What shareholder-friendly practices does Clorox Company have?

Clorox Company implements shareholder-friendly practices, including the right for shareholders to nominate candidates and call a special meeting under certain conditions.

How does Clorox Company consider stakeholder feedback?

Clorox Company values stakeholder feedback, enhancing governance processes based on input and incorporating third-party facilitators and ESG Data Hub for information dissemination.