Corporate Responsibility Governance
Forest City’s CR performance is central to our continued ability to create value for all stakeholders, including our residents, customers, partners, associates, investors
In December 2016, Forest City entered into an agreement to eliminate the company's dual-class share structure and also announced a number of other corporate governance enhancements and Board changes. At the company's 2017 Annual Meeting, stockholders approved all matters before them, including the proposal to reclassify the dual-class share structure and create a single class of stock with "one share, one vote" rights.
In 2017, Forest City adopted a majority voting standard and retirement policy for our Board members. In addition, the Corporate Governance and Nominating Committee amended its charter to include direct oversight of Forest City’s diversity plans and progress, as well as our environmental, social and governance practices and risks.
The executive vice president of Strategic Initiatives and Corporate Operations oversees Forest City’s CR strategy and performance. Our CR team provides regular updates on its activities and progress directly to the Office of the CEO. In 2017, Forest City established an ESG working group comprised of key cross-functional subject matter experts. This team will meet quarterly to identify, prioritize and integrate our CR efforts across the organization. In 2018, these efforts will include working with Investor Relations and Enterprise Risk Management teams to provide greater strategic alignment with our most critical ESG topics.
Enterprise Risk Management
Emerging global environmental and social risks such as climate change and lack of available talent have the potential to impact Forest City’s ability to operate. To help ensure our long-term profitability and success, we must proactively account for likely ESG impacts in our strategic planning.
In 2017, we enhanced the scope of our enterprise risk management (ERM) process to account for additional considerations, including environmental and social risks. Our ERM team, comprised of key subject matter experts and executives, uses a standardized approach to identify and prioritize each risk based on its likelihood and level of impact on the organization.
We will assign owners to our highest-priority risks and develop action plans to manage these risks over both the short- and long-term. Our ERM team re-evaluates our risk statements and plans on an annual basis to ensure we remain focused on the right risks at the right levels of our organization.