ESG governance
The ESG goals for environment, social responsibility, and governance, has gained greater and greater importance in the day-to-day management of our business strategy. Respect for the environment, socially responsible behavior, and the continuous improvement of corporate governance practices are all aspects of our management which help to sustain us as we conduct our business relations.
| We have advanced in many areas, of which one of the most important was to reach the milestone of 2 million free health consultations, from 2019 to 2023, in the communities where we operate. |
ESG Governance practices
Governance structure
At Afya, the management of ESG issues is guided by the Sustainability Policy and involves all areas, under the leadership of the Sustainability Board and the supervision of the People and ESG Committee, responsible for supporting the Board of Directors in formulating strategies relating to environmental, social and governance issues.
Meet the members of the People Committee and ESG. Committee Composition – IR Afya
Afya also has a Technical Sustainability Committee, made up of representatives from all the teaching units, to share good practices and seek improvements together.
The Board of Directors is responsible for formulating the strategies and guidelines for running Afya and for continuously supervising and monitoring the business and its performance.
| Diversity of gender and nationality is one of the characteristics of the board | ||
| 10 board members |
3 board members are women |
4 board members are independents |
See the profiles of the directors and their professional careers. Officers and Directors – IR Afya
Remuneration
The remuneration of the Executive Officers and Senior Management is composed of fixed portions, established on the basis of market parameters, adjusted annually, and a variable portion, which consists of bonuses linked to performance. The independent members of the Board of Directors, on the other hand, are only entitled to fixed remuneration. The issues related to the compensation and benefits paid to the officers comply with the company’s internal policies and guidelines, relating to human resources management, and are assessed and monitored by the Personnel and ESG Committee.
Complementary to the variable remuneration, a group of executive directors is covered by the ‘SOP Program’, which offers the option to purchase shares in Afya, and the ‘RSU Program’, which provides for the granting of restricted shares. For more information, check out our Compensation Recoupment Policy.
ESG according to Sustainalytics
We are classified as a “low risk” company in terms of our ESG performance, according to a rating assigned by Sustainalytics, a global consulting firm and a leader in research on ESG issues. Our performance assessment placed us in the top 10% of the ranking, which includes 13,500 organizations from various countries. The ranking reinforces the idea that any ESG-related risks are, for us, extremely low.
Although the ESG risk classification is low according to Sustainalytics, internally, through our ERM – Enterprise Risk Management process, there is monitoring of relevant risks, which the main one being in the ESG context the risk of environmental non-compliance. This risk concerns non-compliance with environmental regulations, which can result in fines and legal penalties, damage to Afya’s reputation, loss of trust by stakeholders and negative impacts on the environment.
| Audit, Risks and Ethics Committee |
| Responsible for ensuring the integrity and effectiveness of the internal controls, the Audit, Risks and Ethics Committee (CARE) is an independent body, set up to supervise the processes adopted in the management of risks and compliance. It is responsible for monitoring the processes involved in drafting the Company’s financial statements. |
Highlights
Timeline
