10 years of commitment

10 years of commitment to...

Good governance

Susana Guerrero
General Counsel at Lar España, Vice-Secretary
of the Board of Directors

Corporate governance has always been a priority for Lar España. From the beginning, the Board set the goal of being a benchmark both nationally and internationally in terms of good governance, and that is what we have been doing.

This week marks the exact 10-year anniversary of the granting of the deed of incorporation of the Company, and throughout this time, we have devoted tireless efforts to strengthen and improve our governance structure. We firmly believe that a robust corporate governance structure is key to proper decision-making, the smooth operation of any company, market trust, value generation, and ultimately, long-term sustainability.

At Lar España, we understand good corporate governance based on four fundamental pillars:

  • Adequate structure and functioning of governance bodies
  • Strong ethical and compliance standards
  • Solid risk management and control system
  • Maximum transparency and engagement

In terms of the structure and functioning of governance bodies, Lar España has a Board of Directors that is mostly independent, cohesive, and diverse. Diversity is not only in terms of profiles, nationalities, age, and knowledge but also in terms of gender. Over these 10 years, we have evolved to achieve the current 33% representation of women on the Board and have committed to reaching 40% this year, being part of the IBEX Gender Equality Index, which recognizes the efforts of listed companies for gender equality.

The Company also has an Audit and Control Committee and a Nomination, Remuneration, and Sustainability Committee that, acting in coordination with each other and the Board, ensure the best administration of the company. The Board and the Committees are constantly evolving, with an unrelenting desire for improvement. To achieve this, among many measures, we implement training plans for directors, conduct annual evaluations of the functioning of the Board and Committees, and review and publish the competence matrix at least annually.

Compliance and adherence to the highest ethical standards are part of our DNA. We have developed a robust compliance model, along with a comprehensive system of internal rules, regulations, policies, and procedures that reflect the Company’s commitment to regulatory compliance and the best practices of good governance. All these standards are regularly reviewed and updated, under the direct supervision of the Board, and are publicly available through our website.

Risk management and control (financial, strategic, legal, tax, cybersecurity, climate-related, etc.) are essential tools for improving decision-making and ensuring the survival and long-term success. Over the years, we have developed a robust Integrated Risk Management and Control System that allows us to monitor any potential risk, be prepared, mitigate it, and minimize possible impacts that may occur. This system starts with the constant preparation and review of the company’s risk map by the Board, ensuring that all potential risks, including climate-related ones, have been adequately considered.

And all of this is done transparently, placing the reporting and communication of financial and sustainability information among our absolute priorities, along with continuous engagement with our shareholders, investors, and stakeholders in general. In terms of communication and transparency, we have adopted international standards with the highest rigor, through the publication of results reports, annual reports, sustainability reports, press releases, etc., in accordance with GRI, EPRA, GRESB, MSCI, or TCFD, among others. In this regard, we have been awarded the EPRA Gold Award for the ninth consecutive year as recognition of the quality of our financial information, and for the sixth consecutive year, we have also received the highest distinction regarding sustainability information. In terms of engagement, we conduct around 400 meetings per year, including roadshows, conferences, and one-on-one meetings with investors, shareholders, analysts, proxy advisors, and stakeholders in general, always with the support and participation of the Board.

These solid governance principles have led us over these 10 years to systematically comply with almost all the recommendations of the CNMV Good Governance Code and to receive recognition from the corporate governance community, our investors, shareholders, capital markets, proxy advisors, and stakeholders in general, who acknowledge Lar España’s good governance practices.

As we are convinced that there is no other way to do things, over the next 10 years, we will continue working and advancing in the best practices of corporate governance.