Schroders supports the European Commission’s initiative to improve the regulatory framework on corporate governance

Schroders, alongside 9 other organisations with different backgrounds spanning financial services, trade bodies and non-profits but a common interest in sustainable finance, welcome a European initiative on sustainable corporate governance.

The symbiotic nature of economic, environmental and social issues, and how we value and address them, has been made clear by the COVID-19 pandemic. To ensure greater consideration for stakeholders, businesses must have a long-term perspective that considers the adverse impacts on human rights, society and the environment. By promoting environmentally and socially responsible business practices, we can work together towards creating a more sustainable operating environment, while simultaneously achieving the objectives of the European Green Deal and the UN’s Sustainable Development Goals.

We encourage the European Commission to improve the regulatory framework on company law and corporate governance and believe the reform should address the following matters:

  1. Board oversight of environmental, social and governance issues;  
  2. Role of Boards over corporate sustainability strategy;
  3. Sustainability-related incentives and long-term perspective;
  4. A legal framework across the EU for supply chain due diligence to address adverse impacts on human rights and environmental issues; and
  5. Policy coherence of the sustainable corporate governance initiative with other related pieces of legislation.