Comment letter to ecoDa’s Response to the EC Consultation on Sustainable Corporate Governance

Dear Ms. ​Salla Saastamoinen​, acting Director-General,
Dear Ms. Maija Laurila, Head of Unit, A.3 Company law,

ecoDa agrees on the overarching goal of the European Commission to promote sustainable value creation by companies. As a general statement, we welcome all the remarkable work done by the European Commission and the leadership role it plays at the international level to promote sustainable finance and fair competition. The Action Plan on Sustainable Finance has already materialized through important legislative pieces which reinforce the trends observed recently. The engagement of financial actors is creating systemic changes. All these texts, whether they deal with taxonomy or institutional investors' and asset managers' duties, are ultimately impacting company strategy and the operating methods of boards of directors.

Most large investors now emphasize sustainability and there is a huge demand for investment possibilities where sustainability is embedded in the company strategy. This is reflected also in the strong development of share prices among companies building up sustainable operations.

As for remuneration, the use of non-financial criteria, in particular sustainability criteria, has increased rapidly. Besides, it should be noted that in spring 2021 European listed companies will issue remuneration reports for the first time according to the amendments of the shareholders rights directive and this will serve as evidence.

As for stakeholder dialogue, companies have significantly increase their contact with both their shareholders and their relevant stakeholders and in particular Employees Representatives and this development is moving on very visibly.
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