Institutional investors urge Dutch listed companies to nominate more female executive and supervisory directors
Institutional investors have urged Dutch companies to take more actions towards achieving a more gender balanced executive and supervisory board. They believe that progress made in appointing more female executive and supervisory directors in the past five years is disappointing and requires companies to accelerate their board refreshment process and to upgrade their talent management programme. To this end, Eumedion has sent a letter to all Ducht listed companies that have not yet reached the legal target of at least 30% female executive and supervisory directors.
Eumedion has requested all Dutch listed companies to better report on their view to create long-term value for all stakeholders, including the wider society, and their strategy to realise this. Better reporting on the long-term value creation model will be one of the Eumedion focus points for the 2019 reporting and proxy season, as reflected in the recently sent 2019 Eumedion Focus Letter.
Eumedion generally supports the proposals of the European Commission aiming for sustainable European capital markets. A series of draft regulations that were published in May lay the foundation for an EU framework which puts environmental, social and governance (ESG) considerations at the heart of the financial system. However, Eumedion has some reservations about a number of specific proposals, and doubts the usefulness and necessity of the proposal to amend the Benchmark Regulation. That is the key message of Eumedion’s response to the legislative proposals from the European Commission.
Eumedion rejects the idea that European Commission should be able to unilaterally amend IFRS reporting standards
For decades the European Union (EU) has been a driving force behind the ambition of a single set of high quality globally accepted financial reporting standards (IFRS). By now IFRS is used in 144 jurisdictions for all or most of the listed entities; with the United States being the most notable exception. There are only a few examples where individual jurisdictions created deviations from individual IFRS. For investors, the existing and improving global comparability of IFRS reporting entities poses a tremendous benefit. Eumedion calls on the EU to continue to foster the goal of global comparability of IFRS in its response to a consultation on a possible revision of European reporting framework.