ANNUAL REPORT 2021

GOOD GOVERNANCE IN SUSTAINABLE DEVELOPMENT

METHODOLOGY OF SUSTAINABLE DEVELOPMENT MANAGEMENT

In compliance with relevant regulations in association with international practices on corporate governance, apart from building and completing corporate structure toward stronger position and compliance with international standards, PVCFC has built a corporate structure (including corporate governance toward sustainable development) including Charters, regulations and legal documents within the Vietnam Oil and Gas Group to create a professional, transparent and effective governance system from Parent Company to its member companies. Then, PVCFC not only ensures the highest governance principles on ensuring shareholders’ benefits but also harmonizes development goals and social and environmental responsibilities.

SUSTAINABLE MANAGEMENT MODEL AT PVCFC

BOARD OF DIRECTORS
  • Provide strategic directions of the Company related to sustainable development.
  • Approve targets and action plans.
BOARD OF MANAGEMENT
  • Build and submit targets and action plans on PVCFC’s sustainable development to Board of Directors.
  • Share strategies, targets and sustainable development plans throughout the Company.
FUNCTIONAL DIVISIONS AND UNITS
  • Implement sustainable development plans in accordance with orientations of Board of Management.
EMPLOYEES
  • Implement daily tasks related to sustainable development goals of PVCFC.
PVCFC’s corporate governance model is based on harmonious combination of following factors:
  • Solid corporate governance structure: PVCFC’s governance structure is a set of governance entities of a listed company including: General Meeting of Shareholders, Supervisory Board, Board of Directors, Divisions of Board of Directors and Board of Management.
  • Compliance with international practices and the laws of Vietnam: fully comply with regulations of the laws, legal framework of Vietnam and corporate governance of listed companies.
  • Apply corporate governance tools in Vietnam National Oil and Gas Group (PetroVietnam).

PRINCIPLES OF GOVERNANCE FOR SUSTAINABLE DEVELOPMENT

Responsibility of Board of Directors

Establish roles, responsibilities and commitments of Board of Directors as stipulated in Charters

Compose a professional and competent Board of Directors

Ensure independent and effective leadership of Board of Directors

Establish affiliated divisions of Board of Directors

Ensure effectiveness of Board of Directors

Establish and maintain Code of Business Conduct and Ethnics of the Company

Stakeholder relations

Strengthen effective participation of stakeholders: Code of Business Conduct

Shareholder rights

Establish a framework to ensure shareholder rights: Code of Business Conduct

Information disclosure and transparency

Strengthen information disclosure activities: ensure disclosure requirements of listed companies

Control environment

Create a risk management framework and a strong control environment: risk management board plays a major role in supervision.