‘A complicated puzzle we face together’
Sustainability is receiving increasing attention, in both the demand for and the offering of financial products. As are calls for transparency from businesses regarding their performance in this area. But we are still seeing companies providing information that is not sufficiently relevant, reliable, and comparable.
An external look
This is difficult in some cases. Non-financial information is frequently hard to quantify. Also, the definitions used are not always completely clear. The legal playing field is still developing. But one can certainly make a good start by applying good common sense. The social urgency of climate change demands decisiveness. Companies need to tell us what impact they are having on the environment and our society, and how those aspects affect them. This will be the standard.
Taking responsibility
Everyone can see that there are too many standards. But we have to stop pointing fingers at each other. Companies, shareholders, investors, auditors, social organisations, the public debate, ourselves as a supervisor – we are all part of a complicated puzzle. Everyone has some room to manoeuvre, but ultimately all the pieces of the puzzle have to come together. Everyone in the chain needs to fulfil their responsibility.
Real story
The situation is urgent, and the need to show social impact will not go away. All the players in the capital markets (and elsewhere) have to make a start on this, even if not everything is yet completely clear. Transparency is of course a means to an end, not an end in itself. Companies need to tell the real story, the changes they intend to make and the actions they are taking. Actions speak louder than words.
Hanzo van Beusekom, bestuurder AFM