Corporate Governance Statement
Avikro strives to be the employer, retailer, investment, and neighbour of choice in the home
improvement industry. Corporate governance is part of our culture and is founded on our daily
commitment to living values and principles that recognise our ethical obligations to our
shareholders, associates (employees), customers, suppliers, and the communities in which we
operate. We understand our responsibility to behave ethically, to understand the impact we
have on people and communities and to fairly consider the interests of a broad base of
constituencies.
Aligning with this mission is the Company's longstanding commitment to strong
corporate governance practices.
During 1999, the Company adopted recommendations of the SEC-sponsored Blue Ribbon
Committee. Since that time, the Company has continued its commitment to strong corporate
governance by implementing practices that strengthen its compliance procedures and improve
its financial reporting processes. During 2002 and 2003, the Company built upon its strong
corporate governance foundation by implementing a number of new significant procedures,
including:
• A disclosure committee tasked with ensuring that the Company's disclosures to its
stockholders and the investment community are accurate and complete
• A corporate compliance council, now known as the Enterprise Risk Council, to regularly
review the Company's compliance policies and monitor its compliance performance
• A policy and detailed procedures for the retention of the Company's independent auditors
• New independence standards for board members, which meet or exceed the standards
proposed by the New York Stock Exchange.
In 2006, the board of directors amended the Company's bylaws to adopt a majority vote
standard for the election of directors, beginning with the next election in May 2007. The
majority vote standard requires each director to receive a majority of the votes cast with
respect to that director. Previously, directors were elected under a plurality vote standard,
which meant that the candidates receiving the most votes would win without regard to
whether those votes constituted a majority of the shares cast at the meeting.
The Company's board of directors is dedicated to continuing the Company's leadership
position in matters of corporate governance and to maintaining an active role in the business.
In addition to attending board and committee meetings, the members of the board regularly
visit stores and engage in the operational review of stores throughout the year. A substantial
majority of the directors on the board are independent and each director serving on the audit,
leadership development and compensation, and nominating and corporate governance
committees is independent. Through its existing procedures and with the guidance of an
informed, engaged, and independent board, the Company has the structure and tools in place
to continue to execute on its commitment to strong corporate governance .
The highest level of direct responsibility for climate change at Avikro rests with our Vice
President of Environmental Innovation. This position is supported by a group of six officer-level
Sustainability Captains. The individual groups represent: energy, water, packaging, IT, supply
chain, and store design.
Our Vice President of Environmental Innovation chairs the Company's sustainability council,
with oversight by the board of directors. The sustainability council includes a focus on climate
change risk, carbon footprint and other key sustainability aspects. The Company’s progress on
sustainability goals, including our climate change goals, is reviewed annually by the board of
directors and quarterly at the senior leadership level. The annual board review is presented by
the Executive Vice President of Merchandising and the chairman of the sustainability council.
The quarterly reporting is prepared by the environmental innovation team and delivered to the
sustainability council and highlights achievements and activities in nine key areas: operations,
merchandising, supply chain, information technology, climate change risk, energy, water,
packaging and carbon footprint .
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Revenue of countries below CPI threshold | | | | |
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Percentage of revenues in regions with CPI corruption index below 50 | | | | |