{"id":4462,"date":"2021-06-30T10:58:51","date_gmt":"2021-06-30T08:58:51","guid":{"rendered":"https:\/\/vbdo.nl\/?p=4462"},"modified":"2024-07-22T15:32:48","modified_gmt":"2024-07-22T13:32:48","slug":"more-commitments-on-sustainable-performances-of-companies-transparency-is-lacking","status":"publish","type":"post","link":"https:\/\/vbdo.nl\/en\/2021\/06\/more-commitments-on-sustainable-performances-of-companies-transparency-is-lacking\/","title":{"rendered":"Increased commitments on sustainable performance of companies, transparency is lacking"},"content":{"rendered":"

Every year, the Dutch Association of Investors for Sustainable Development (VBDO) visits the shareholders\u2019 meetings of the largest Dutch, stock-listed companies to obtain commitments on sustainable performance. This is based on extensive research into (non) sustainable performances of these companies. In total, 37 companies were approached and investigated, 139 questions were asked, and 59 commitments were made. The most important findings and commitments are presented in the AGM engagement report published today.<\/strong><\/p>\n

Lack of interaction at online shareholder meetings<\/strong><\/h3>\n

Like last year, the shareholders\u2019 meetings this year took place entirely online. Shareholders were therefore requested to submit their questions in advance. As a result, there was no real interaction during the meetings. For this reason, Eumedion, VEB and VBDO issued an appeal to the boards, requesting that shareholders are given the opportunity to ask questions live. \u201cThat call has been heard,\u201d said Angelique Laskewitz, director of VBDO. \u201cAbout a third of the companies we visited had people speaking live. This also helped when asking our own questions.\u201d<\/p>\n

Focus on three sustainable themes<\/strong><\/h3>\n

These questions are focused on three themes over a period of several years, so the degree of progress can be determined in the research. This year, commitments for development were requested on the themes of climate change adaptation, working conditions along the chain and inclusion.<\/p>\n

Companies are more aware of the risks of climate change<\/strong><\/h3>\n

The report shows that Dutch listed companies are becoming more and more aware of the physical risks of climate change. In doing so, they are increasingly looking at how direct effects such as extreme rainfall, drought, sea level rise, and wildfires relate to, for example, the operational facilities. Unilever, RELX and Signify rose from the classification \u201clearning\u201d to leading\u201d of the five leading companies in total.<\/p>\n

21 companies, compared to 14 last year, have made this information public. \u201cReporting on this theme is essential,\u201d says researcher Mart van Kuijk of VBDO. \u201cBy making data public, companies give shareholders and other stakeholders the opportunity for investigation and further discussion.\u201d<\/p>\n

Nearly a third of the companies now perform specific climate scenario analyzes related to, for example, their fleet, specific agricultural production regions, strategic assets, or their supply chain.<\/p>\n

New EU law calls for more transparency in working conditions<\/strong><\/h3>\n

In the latter category, almost 90% of the companies surveyed have made a formal commitment to improve working conditions. Nevertheless, transparency within this theme is still regularly lacking, as mentioned in the report.<\/p>\n

For example, on the one hand, many companies have developed a Code of Conduct, with guidelines for suppliers, requiring compliance with certain rules of conduct. On the other hand, there are only a handful of companies that actually identify and address their impact within the chain. Even fewer companies actually report on the execution and outcomes of activities after assessing their suppliers.<\/p>\n

\u201cThere is only a small group of companies that look beyond the cross-off boxes on the self-assessment of suppliers and have an eye for improving conditions. This really needs to change, especially in light of the upcoming European ESG legislation in which companies will become responsible for all practices in their supply chain,\u201d says van Kuijk.<\/p>\n

Motivate suppliers for a more sustainable performance<\/strong><\/h3>\n

For the transition from a system that complies with legislation and regulations, to a continuous, proactive investigation within a chain, suppliers must be motivated and involved. That turns out to be quite a challenge. Maurice Loosschilder, Head of Sustainability at Signify, explains that for this reason a special program for suppliers has been created, based on selection- and rewards criteria, including sustainability performance.<\/p>\n

\u201cThe better the performance, the higher the supplier scores and the more beneficial the relationship becomes for this supplier. For example, we offer them recognition with the Supplier Awards, invitations to innovation workshops, and shared management agendas. This clearly communicates to our suppliers that we take sustainability seriously, we are fully prepared to do our part and where possible help the supplier to improve.\u201d<\/p>\n

Diversity is more than gender<\/strong><\/h3>\n

The situation for the theme of diversity and inclusion is comparable to that of working conditions in the chain. More than 90% of the companies have policies in place for preventing and reporting internal ethics or discrimination complaints, according to the report. In contrast, about a third of companies have comprehensive diversity and inclusion policies, which include all underrepresented groups. Only one in five companies assesses, communicates and addresses the differences in income between men and women, the so-called pay gap.<\/p>\n

Van Kuijk emphasizes that diversity efforts should not be limited to gender only: \u201cWe still encounter companies that only have a gender policy for the board and that have never heard of the word inclusion. So, there are still steps to be taken.\u201d<\/p>\n

Webinar presentation of the report<\/h2>\n

On June 30th 2021, the AGM engagement webinar took place. You can find a recording of the event on this page<\/a>.<\/p>\n

Program<\/strong><\/p>\n