Royal Ahold Delhaize is constantly confronted with conflicting interests from various stakeholder groups. The company faces activism focused on sustainability and climate but also groups pushing in exactly the opposite direction. Chairman of the Supervisory Board, Peter Agnefjäll, has a heartfelt interest in listening to everyone's concerns and criticism. ‘As a customer-focused company, you must cater to all your stakeholders to be successful. There is a constant friction between various interests so finding balance is a continuous process.’

What actions should leaders take now to be confident in a decade that they made the right choices? Hilde van der Baan and Gijs Linse from A&O Shearman set out to explore this question for Management Scope with shareholders, employees, and employers. In this final interview of a series centered on reflection, they speak with Jumbo CEO Ton van Veen. ‘I make my decisions carefully, with a well-calibrated compass. There is not much more you can do. But I suspect the conclusion later might well be that I should have done things differently.’

What should and can companies do now to ensure they are still doing 'the right thing' in five to ten years? Heijmans CEO Ton Hillen puts it this way: 'We are giving it our all.' In its strategy, the construction company formulates bold statements to support the sustainable transition. 'They are so ambitious that we realize we may not achieve all of them, but only with truly bold goals do you motivate people to action.' 

Appreciating that a company must play a sustainable and lasting role in society does not require codes or legislation, according to Jeroen Drost, a member of several supervisory boards and former CEO of SHV Holdings. He argues that more laws and rules only create a false sense of security. ‘Addressing excesses is more a matter of enforcement.’

Jelle Miedema, company secretary at Randstad, is first and foremost the linking pin between the executive board and the supervisory board. With the role of the supervisory board changing, that of the company secretary is changing with it. 'Members of the supervisory board are busier and the responsibilities of the position are expanding. They therefore find it increasingly critical to have someone who informs and advises them well.'

Geerte Hesen has, since beginning 2024, been the first Dutch chief legal and compliance officer and secretary of the board of directors of the Spanish construction giant Ferrovial, with its headquarters located in Amsterdam. How does she approach this role, and what are the challenges? 'We must ensure that an increasingly complex landscape of laws and regulations does not become an obstacle to competitiveness and sustainable growth.'

The leaders participating in this round table all work in energy and chemicals. All three see ESG legislation as an ‘enormous opportunity’ to restore the broken trust between industry and society, but they also agree that greater realism is required. ‘We all aim to contribute to solutions, but some preconditions need to be in place. At present the nuance often gets lost.’

Stronger leadership, increased decisiveness and a green industrial policy are what Jan Rotmans, professor of transition studies, believes to be essential to achieve the ESG goals. He finds the current polarization around this theme lethal. ‘We need to get rid of enemyism. Changes of course need to happen faster and smarter, but without the commitment of big companies, the sustainable transition is doomed to failure.’  

ESG and corporate social responsibility have become an integral part of conducting business. Hilde van der Baan and Gijs Linse of A&O Shearman argue for transparency and less polarization to restore the trust between industry and society. According to Van der Baan and Linse companies see ESG legislation as an opportunity to bridge the gap with society.

Corporate social responsibility and profit maximization do not necessarily have to be opposing interests, argue Hilde van der Baan and Gijs Linse of A&O Shearman, though investors do often differ in their views on the risks of sustainable investments and the timeframe in which they expect these investments to pay off. To further accelerate the transition, a more competitive capital market and consistent government policy are required.

What are the pros and cons of using artificial intelligence (AI)? Should employees be allowed to use AI in performing their tasks, and where have things already gone wrong? These questions were addressed during an AI masterclass for company secretaries, organized by A&O Shearman and Management Scope. What is evident is that the European AI Act, the first comprehensive regulatory framework, will have a significant impact. ‘It will not only be the big tech companies that need to comply with the law.’

More and more directors are intrinsically motivated to make their company's value chain more sustainable and fairer. Legislation can help to also get their partners in the chain moving and create a level playing field, argue Hilde van der Baan and Gijs Linse of Allen & Overy. 

Directors and supervisory directors are under the magnifying glass of both the media and society. During a breakfast session by Management Scope and Allen & Overy, top female executives exchanged thoughts on how they perceive this and what consequences it has, and subsequently came to four inspiring insights for not putting the brakes on excessively. ‘It cannot be that we all do nothing because we are too afraid.’

Companies will inevitably face changes again in 2024, very often related to ESG goals. As the season of shareholder meetings approaches, the question is what the agenda of the next AGM will look like. During a seminar for company secretaries, organized by Management Scope in collaboration with Allen & Overy, the key issues were discussed.

A clearly worded remuneration report, proactively updating investors, following new laws and regulations, and having an eye for social support - company secretaries can help ensure that shareholders approve their company’s remuneration policy and report. During a masterclass, they were updated on current developments and trends. ‘Of all agenda items, the remuneration report is the one that most often receives a ‘no’.’

The working environment of 2035 will be fundamentally different from that of today. To remain future-proof, employers need to work on robustness now, argue Hilde van der Baan and Gijs Linse of Allen & Overy. They identify five trends employers can capitalize on for sustainable success.