The current governance of audit standards lacks broad stakeholder involvement and is dominated by accountants. The Monitoring Group, the group of international financial institutions and regulatory bodies and responsible for the overall governance of the international audit-related standard-setting process, issued a consultation document that outlines concrete proposals to make the audit standard-setting process future proof. In its today's issued comments, Eumedion welcomes the proposals that in many ways appear to mimic the governance of the IFRS Foundation. The composition of the independent board of the International Auditing and Assurance Standard Board (IAASB) should indeed be revised in a way that includes members from all major stakeholder groups.
Eumedion believes that considering sustainability factors when making investment decisions should be part of the fiduciary duty of institutional investors. That is the key message of the response submitted by Eumedion to the EU consultation on institutional investors and asset managers' duties regarding sustainability.
Institutional investors urge Dutch business leaders to take action on achieving the UN Sustainable Development Goals
Institutional investors are calling on Dutch companies to take concrete action towards achieving the UN Sustainable Development Goals. Among the in 2015 adopted goals are an end to poverty and hunger; action on climate change and its impacts; gender equality, and access to clean water and sustainable energy. In today’s published Focus Letter for the 2018 reporting and AGM Season, Eumedion encourages all Dutch listed companies to assess on which 17 Sustainable Development Goals they can generate most impact and to align their business practices and KPI framework with these Goals. Eumedion also stresses the importance of clear and meaningful reporting on the companies’ SDG objectives, the progress made and the generated impact.
Pension funds, insurers and asset managers have prepared a draft Dutch Stewardship Code which expresses their position as an engaged and responsible shareholder at Dutch listed companies. Application of the code’s principles by institutional investors will contribute to sustainable long-term value creation of the investee companies and, consequently, to the long-term returns on the investment portfolio. The code also makes pension funds, insurers and asset managers more accountable to their beneficiaries and clients by making transparent how the exercise of the shareholder rights have contributed to the protection of the value of the investment portfolio. The draft code of conduct has been prepared by Eumedion participants and has been launched today by a public consultation.