Eumedion: proposals for revision of Dutch corporate governance code should have been more ambitious
News · 15-04-2022
The proposals of the Dutch Corporate Governance Code Monitoring Committee concerning the more detailed interpretation of the concept of 'long-term value creation' should have been more ambitious. This is what Eumedion writes in its reaction to the proposals of the Monitoring Committee for updating the Dutch corporate governance code, which was submitted today.
Eumedion believes that the proposals in question more or less codify existing market practice instead of stimulating the "middle group" and laggards of Dutch listed companies to align themselves with the best practices in the market, which was the original objective of the Code. Eumedion notes that the proposals of the European Commission concerning corporate sustainability reporting ('CSRD') and concerning corporate sustainability due diligence ('CSDD proposal') go much further than the proposals presented by the Monitoring Committee. Eumedion is also disappointed that the Monitoring Committee has failed to extend the scope of the so-called in-control statement from financial reporting risks to (also) compliance and operational risks. Eumedion does appreciate, however, that the Monitoring Committee proposes to include important parts of the Eumedion Stewardship Code in the revised Dutch corporate governance code. "This underlines our belief
that the engagement and voting policy of shareholders should also (ultimately)
facilitate the strategy of Dutch listed companies aimed at long-term value
creation; the central focus of the Code," according to Eumedion. Eumedion also generally supports the proposals on diversity and inclusion and on the internal audit function.