Governance

Basic Policy on Corporate Governance

RENOVA operates its business in line with its mission, “to create green and sustainable energy systems for a better world,” and its vision, “to become Asia’s renewable energy leader.”
RENOVA believes that to achieve these goals it is important to gain the trust of local communities, its customers, shareholders, employees, and all other stakeholders. To this end, it is strengthening and improving its corporate governance by building a legal compliance system, quick decision-making and business execution system, and appropriate supervision and monitoring systems.

Policy on Stock Ownership by Directors

In 2018 and 2021 respectively, the Company introduced a performance-based stock compensation plan using a trust, as an incentive plan for Directors (compensation is not based on performance for External Directors) aimed at further increasing motivation to contribute to improving the Company’s medium- and long-term business performance and stock value by clarifying the linkage between compensation for the Directors and the Company’s stock value. The stock compensation plan introduced in 2018 covers only External Directors and consists of nonperformance-based stock compensation, which is not linked to business performance at all. The ratio of nonperformance-based stock compensation to the basic compensation is 20% across the board.
The performance-linked indicator emphasized in the stock compensation plan introduced in 2021 is the cumulative total power generation capacity (GW) of renewable energy plants in operation, plants whose development-related investments have been determined, and plants acknowledged in development pipelines. The calculation method for the amount of performance-based stock compensation is determined by the Board of Directors in accordance with factors such as degree of contribution, level of expectation and degree of achievement of performance targets and based on the deliberations and recommendations of the Nomination and Compensation Committee.

Operational Status of Anti-Corruption Policy

The RENOVA Group (hereinafter also referred to as “we,” “our” and “us”) has established an anti-corruption policy. We observe laws, regulations and other arrangements concerning prevention of acts of corruption in different countries applicable to regions where we operate, carry out fair business activities in accordance with sound commercial practices and with social norms and strive to prevent any act of corruption.

In addition, the RENOVA Group has constructed a system for preventing acts of corruption, especially acts of bribery of public officers in individual countries where it operates, and has established the Rules for Prevention of Corruption of Foreign Public Officialsas rules to be observed by its officers, employees and stakeholders. Furthermore, the Rules for Prevention of Corruption of Foreign Public Officials have descriptions and notes on laws, regulations and other arrangements regarding the prevention of acts of corruption in individual countries where we operate. We provide training to officers and employees of our subsidiaries based in individual countries in order to make the said rules known to and observed by them.

  • Training

    The RENOVA Group provides training on prevention of acts of corruption and obtains letters of commitment to the observance of the Commitment to Compliance from all its officers and employees in the annual confirmation of the Commitment to Compliance with a view to raising their overall ethical awareness.

  • Auditing

    The RENOVA Group carries out at least one audit each year according to the risk level in order to examine if its measures are properly implemented in accordance with the Rules for Internal Audit.

For the fiscal year ending March 31, 2025 to date, no officers or employees have been found in violation of the anti-corruption rules and no fines have been levied in connection with corruption.