Post by Eurosif - The European Sustainable Investment Forum

💬 𝗘𝘂𝗿𝗼𝘀𝗶𝗳 𝗿𝗲𝘀𝗽𝗼𝗻𝘀𝗲 𝘁𝗼 𝘁𝗵𝗲 𝗦𝗥𝗗 𝗜𝗜 𝗿𝗲𝘃𝗶𝗲𝘄 𝗰𝗼𝗻𝘀𝘂𝗹𝘁𝗮𝘁𝗶𝗼𝗻: 𝗲𝗺𝗽𝗼𝘄𝗲𝗿𝗶𝗻𝗴 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀 𝘁𝗼 𝘀𝘂𝗽𝗽𝗼𝗿𝘁 𝗰𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀’ 𝘁𝗿𝗮𝗻𝘀𝗶𝘁𝗶𝗼𝗻 𝘁𝗼 𝘀𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗶𝗹𝗶𝘁𝘆 Yesterday, Eurosif responded to the European Commission’s public consultation on the upcoming review on the Shareholder Rights Directive (#SRD2). 💡 𝗪𝗵𝘆 𝗱𝗼 𝗦𝗵𝗮𝗿𝗲𝗵𝗼𝗹𝗱𝗲𝗿 𝗿𝗶𝗴𝗵𝘁𝘀 𝗺𝗮𝘁𝘁𝗲𝗿 𝗳𝗼𝗿 𝘀𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗹𝗲 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁? Shareholders, including institutional investors, have the right to engage with the companies they invest in and to influence key strategic decisions. Effective EU shareholder rights rules ensure timely and reliable transmission of information, and facilitate responsible investors’ exercise of these rights in practice to steer companies towards more sustainable, long term strategies. ✔️ 𝗢𝘂𝗿 𝗺𝗮𝗶𝗻 𝗿𝗲𝗰𝗼𝗺𝗺𝗲𝗻𝗱𝗮𝘁𝗶𝗼𝗻𝘀 𝘁𝗼 𝗶𝗺𝗽𝗿𝗼𝘃𝗲 𝗦𝗥𝗗 𝗜𝗜:  • 𝗘𝘀𝘁𝗮𝗯𝗹𝗶𝘀𝗵𝗶𝗻𝗴 𝗮 𝘃𝗼𝗹𝘂𝗻𝘁𝗮𝗿𝘆 𝗘𝗨 𝘄𝗶𝗱𝗲 𝘀𝘁𝗲𝘄𝗮𝗿𝗱𝘀𝗵𝗶𝗽 𝗰𝗼𝗱𝗲 to harmonise expectations and strengthen engagement practices.  • 𝗗𝗲𝗳𝗶𝗻𝗶𝗻𝗴 𝘄𝗵𝗮𝘁 𝗰𝗼𝗻𝘀𝘁𝗶𝘁𝘂𝘁𝗲𝘀 𝗮 ‘𝗰𝗿𝗲𝗱𝗶𝗯𝗹𝗲’ 𝗲𝗻𝗴𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝗽𝗼𝗹𝗶𝗰𝘆, particularly for sustainability related engagement, and ensuring consistency between the SRD framework and the Sustainable Finance Disclosure Regulation (SFDR).  • 𝗚𝗿𝗮𝗻𝘁𝗶𝗻𝗴 𝘀𝗵𝗮𝗿𝗲𝗵𝗼𝗹𝗱𝗲𝗿𝘀 𝗮𝗻 𝗘𝗨 𝘄𝗶𝗱𝗲 𝗿𝗶𝗴𝗵𝘁 𝘁𝗼 𝘃𝗼𝘁𝗲 𝗼𝗻 “𝘀𝗮𝘆 𝗼𝗻 𝗰𝗹𝗶𝗺𝗮𝘁𝗲, 𝗻𝗮𝘁𝘂𝗿𝗲 𝗼𝗿 𝘀𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗶𝗹𝗶𝘁𝘆”, to put sustainability decision making on an equal footing with financial matters.  • 𝗖𝗹𝗮𝗿𝗶𝗳𝘆𝗶𝗻𝗴 𝘁𝗵𝗮𝘁 𝗰𝗼𝗹𝗹𝗲𝗰𝘁𝗶𝘃𝗲 𝗲𝗻𝗴𝗮𝗴𝗲𝗺𝗲𝗻𝘁, 𝗶𝗻𝗰𝗹𝘂𝗱𝗶𝗻𝗴 𝗼𝗻 𝘀𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗺𝗮𝘁𝘁𝗲𝗿𝘀, 𝗱𝗼𝗲𝘀 𝗻𝗼𝘁 𝗶𝗻 𝗶𝘁𝘀𝗲𝗹𝗳 𝗰𝗼𝗻𝘀𝘁𝗶𝘁𝘂𝘁𝗲 “𝗮𝗰𝘁𝗶𝗻𝗴 𝗶𝗻 𝗰𝗼𝗻𝗰𝗲𝗿𝘁”, to remove a major legal barrier to collaborative stewardship.  • 𝗜𝗺𝗽𝗿𝗼𝘃𝗶𝗻𝗴 𝘁𝗵𝗲 𝘁𝗿𝗮𝗻𝘀𝗺𝗶𝘀𝘀𝗶𝗼𝗻 𝗼𝗳 𝗶𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗰𝗼𝗺𝗺𝘂𝗻𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗮𝗰𝗿𝗼𝘀𝘀 𝘁𝗵𝗲 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗰𝗵𝗮𝗶𝗻, to ensure shareholders can engage and vote effectively.  • 𝗦𝘁𝗿𝗲𝗻𝗴𝘁𝗵𝗲𝗻𝗶𝗻𝗴 𝘀𝗵𝗮𝗿𝗲𝗵𝗼𝗹𝗱𝗲𝗿 𝗿𝗶𝗴𝗵𝘁𝘀 𝗮𝘁 𝗴𝗲𝗻𝗲𝗿𝗮𝗹 𝗺𝗲𝗲𝘁𝗶𝗻𝗴𝘀, including by removing or at least lowering disproportionate ownership thresholds to table agenda items and resolutions, and by promoting hybrid AGMs.  • 𝗠𝗮𝗸𝗶𝗻𝗴 𝘀𝗵𝗮𝗿𝗲𝗵𝗼𝗹𝗱𝗲𝗿 𝘃𝗼𝘁𝗲𝘀 𝗼𝗻 𝗱𝗶𝗿𝗲𝗰𝘁𝗼𝗿𝘀’ 𝗿𝗲𝗺𝘂𝗻𝗲𝗿𝗮𝘁𝗶𝗼𝗻 𝗯𝗶𝗻𝗱𝗶𝗻𝗴 𝗮𝗰𝗿𝗼𝘀𝘀 𝗮𝗹𝗹 𝗠𝗲𝗺𝗯𝗲𝗿 𝗦𝘁𝗮𝘁𝗲𝘀, and strengthening transparency on how ESG criteria are integrated into variable pay. ➡️ Read our response here: https://lnkd.in/d-jnkhBi ➡️ Read our press release here: https://lnkd.in/dvUPEdk7