CFA Institute Sustainable-Investing Exam - Topic 2 Question 12 Discussion

Most companies, particularly those operating under strong corporate governance frameworks (e.g., UK Corporate Governance Code), are expected to maintainthree principal board committees: audit, nomination, and remuneration. These committees serve critical governance functions---financial oversight, board composition, and executive pay.

''Expectations and duties of the three principal board committees that almost all major companies have in place: the audit committee... the nominations committee... and the remuneration committee.''

While sustainability or risk committees may exist in some firms, they are not as universally established as the three mentioned above.