Category	Assessment Criteria	Description
Transparency	Comprehensiveness of the SOE summary reports	Level of comprehensiveness and publicity of annual reports of each SOE, as stated in the requirements of Transparency guidelines.
	SOE social responsibility	SOE social reasonability, assessed on the basis of two criteria: comprehensiveness of information on implemented social and environmental initiatives provided in the enterprises’ activity reports or annual reports, and whether enterprises have separate CSR reports in place.
	International accounting standards (IAS)	Application of IAS, allowing greater comparability on international level and decreasing differences in accounting practices, by each enterprise.
	Opinion of external auditors	Evaluated on the basis of two criteria: opinion of external auditors on the SOE financial statements, and how often each enterprise changed their independent auditor in the last seven years.
Boards	Board independency	Two criteria: the number of independent members on company boards (independent members should comprise one third or more of the total number of board members) and the number of board members not taking part in sector policy making.
	Board competences	As indicated in Ownership guidelines, each company board should include members with competences in the fields of finance, strategic planning and the relevant sector, in ideal case, acquired in the private sector.
	Sitting of SOE employees on the boards	Presence of SOE employees on the boards. Disadvantageous, as it reduces board’s independence from company’s management.
	Board members’ participation	Assessed on two criteria: whether SOE board members sit on boards of more than three other companies (consider disadvantageous, as such board member is unlikely to devote sufficient time and attention to company’s problems), and the frequency of board meetings.
	Board committees	Evaluates if Audit and Remuneration committees are formed at each enterprise.
	Selection of board members	Assessment of board member selection criteria. Presence of Selection committee and utilization of open selection procedures for appointing board members evaluated as good practices.
Strategic planning, strategic implementation and control	Quality of corporate strategies	Evaluation of SOE corporate strategies carried out by Governance Coordination Center.
	Supervision of strategy implementation and internal control system	Assessment criteria: presence of strategy implementation procedure in internal documents of SOE; fully or partially operation internal control system and control procedures, especially related to risk factor management; internal periodic audits.
	Implementation of corporate objectives	Assessment of fulfillment of SOE objectives, according to the goals set by the State: 1) • Annual ROE at least 5% for Group 1A and 1B enterprises (except forestry companies which have individual profit targets); 2) Positive ROE for Group 2 enterprises.