All Dutch
listed companies are expected to prepare a transition plan in the coming year
in order to operate completely climate-neutral by 2050 at the latest. The
transition plan must contain short-, medium- and long-term CO2 emission
reduction targets and explain how the company intends to achieve these targets.
The plan must be discussed with the shareholders. Companies that have a
relatively large impact on climate change or that otherwise face major climate
risks are encouraged to submit their progress report on the road to climate
neutrality to the shareholders’ meeting for an advisory vote.
This request
is incorporated in the Focus Letter 2022 that Eumedion has sent to all Dutch
listed companies. The Focus Letter contains the topics that tend to be
discussed in the dialogues Eumedion facilitates between Dutch listed companies
and Eumedion members in the run-up to the 2022 shareholders’ meetings. The
companies are encouraged to have the CO2 emissions reduction targets validated
by the Science Based Targets initiative (SBTi) and reviewed by the external
auditor. The reduction targets must relate to both the company's own activities
and those of suppliers, customers and end users (i.e. the entire value chain;
the so-called scope 1, 2 and 3).
Eumedion
writes in the letter that the next ten years are crucial for still being able
to prevent dangerous climate change.
Eumedion believes that all listed companies, shareholders and external auditors
have a responsibility to contribute to this objective (however small it may
be). Companies are expected to report annually on their progress in meeting
their CO2 reduction targets. Shareholders can then monitor progress and, if
necessary, push for acceleration. External auditors can issue an independent
assessment of the 'thoroughness' of the reduction targets and how they fit in
with the company's operational and financial plans.
In addition
to preparing climate transition plan, Eumedion has requested Dutch listed
companies to also report on their diversity and inclusiveness policy
(including objectives) for the entire workforce and on the effectiveness of
their measures (and procedures) to ensure that human rights are safeguarded
throughout their value chain.