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Since 1995, we have been a loyal visitor to general shareholders’ meetings (AGMs). Every year, we ask critical questions to the directors of around 40 Dutch-listed companies to promote sustainable business operations. The material environmental, social, and governance issues concerning companies and sectors will be addressed during the engagement process. VBDO will focus on three priority ESG themes in 2025:
CSRD (governance, SDG 17) – new engagement theme
In 2025, VBDO’s new governance theme will be the Corporate Sustainability Reporting Directive (CSRD). This marks the first time this theme has been selected as one of VBDO’s three core themes.
Following the developments of the European Union, reporting on sustainability has become mandatory for several European companies as of 2025, reporting over the financial year of 2024. VBDO supports these developments and aims to understand how the company plans to implement the reporting standard. Transparent reporting on these elements is essential to foster accountability and presents an opportunity to address a variety of sustainability topics.
VBDO expects the integration of CSRD elements into corporate reporting, particularly the processes for conducting the double materiality analysis and engaging with stakeholders.
Living wage (social, SDG 8) – engagement theme since 2024
VBDO’s social ESG theme in 2025 is “living wage”. This will be the second time this theme is selected, as this has been a theme of engagement from 2016 until 2019. Paying a living wage goes further than paying the legal minimum wage. The living wage should be sufficient for a worker to maintain a decent standard of living for themselves and their family. This means that the wage should cover essential needs such as food, water, housing, education and healthcare. Moreover, the living wage is tailored to local conditions as the costs of essential needs differ per area. According to the Living Income Community of Practice1, the concept of a living wage has positive implications for sustainable development and can be linked to a number of the Sustainable Development Goals of the United Nations. Overall, a living wage contributes to a more just, sustainable, and equitable world.
VBDO expects companies to pay a living wage to its direct employees. However, the responsibility for payment of a living wage extends beyond a company’s own direct employees. Companies are expected to uphold responsible business practices and this includes respecting the rights and well-being of workers throughout the entire value chain. VBDO’s main focus will be on (1) the company’s policy on living wage in relation to its employees and the value chain, (2) the identification of risks and opportunities on the topic of living wage (3) the implementation of actions that guarantee a living wage in the supply chain and (4) transparency about wage practices.
Biodiversity (environmental theme, SDG 14 & 15) – engagement theme since 2022
VBDO’s environmental priority theme since 2022 is “biodiversity”. We are familiar with this theme as we have focused on this three times in our 27-year history (2003-2005, 2010-2013, and Natural Capital from 2017-2018). We observe an increased interest in this topic from financial markets, companies and regulators, but much more needs to be done to bend the curve of natural loss. WWF’s Nature’s 2020 Living Planet Report states that wildlife populations have declined by 68% since 1970. There is no time to waste to solve this crisis.
VBDO will define a clear vision for corporate action on biodiversity. We want to know how companies take accountability and contribute to net-zero biodiversity loss or become nature-positive in the long term. VBDO is aware that biodiversity and the biological diversity of species are not as material to all companies directly, but all companies rely on goods and services that are linked to natural capital. Therefore, companies are expected to identify risks and opportunities following topics such as land use, air quality, water use and quality, climate and soil, both for their own operations and in their supply chains. Although reporting of impacts and externalities is key, VBDO’s main focus will be on a company’s nature and biodiversity-related strategy, relevant KPIs and the implementation of mitigating actions.
How VBDO engages companies
Find more information on our engagement process, planned AGM visits and reports. Our AGM engagement report 2024 was published on the 27th of June 2024, and its key findings were presented at the VBDO AGM engagement seminar 2024 at BNP Paribas in Amsterdam.
