The Essentra Board is accountable to all the Company's stakeholders, as well as shareholders, for the standards of governance which are maintained across Essentra's diverse range of international businesses.
The Board can confirm that it has applied all the Principles and complied with the all the Provisions as set out in the 2018 UK Corporate Governance Code (the “Code”), other than provision 38 of the Code on pension contribution rates, which the Company continues to work towards and will be fully effective for Executive Directors from 1 Jan 2023 onwards. Provision 38 requires the pension contribution rates of the Executive Directors to be aligned with those of the workforce, and accordingly, the Executive Directors have agreed to reduce the levels of contributions made by the Company towards achieving full compliance with the provision. More detail can be found on page 116.
The Corporate Governance Report reflects the pillars of the Code. Some of the information required by the Code is included in the Strategic Report and is cross-referenced here to avoid unnecessary duplication.
During the year, Essentra was and continues to be subject to the UK Corporate Governance Code (“the Code”) 2018 published by the Financial Reporting Council (“FRC”), a copy of which can be found on its website www.frc.org.uk.
The Board has reviewed its operations and governance framework and confirms that, as at the date of the 2021 Annual Report, the Company has complied with the provisions set out in the Code.
The Company applies the Code’s principles of openness, integrity and accountability through its own behaviour, corporate governance best practice and by adopting, as appropriate and proportionate for a company of the size and nature of Essentra, recommendations of relevant professional bodies.
The Board is collectively responsible for the long-term success of the Company, and its role is to provide entrepreneurial leadership within a framework of prudent and effective controls, which enables risk to be assessed and managed in the pursuit of the Company’s strategic objectives.
The Board believes that it and its Committees have the appropriate composition to discharge their respective duties effectively with the appropriate level of challenge and level of independence, and that the members of the Board in conjunction with the senior executive teams are well equipped to drive, and are capable of delivering, the Company’s strategic objectives. The Board is of the view that it has a highly competent Chairman who, together with each of the other Non-Executive Directors, has considerable international experience at a senior level in the management of activities broadly similar to those carried out by Essentra and the material issues likely to arise for the Group.