Sustainability Governance- Stakeholders and Directors - Time to PIVOT
Dear ILA members,
Recent unprecedented flooding weather conditions in Germany, Belgium, the Netherlands, and Luxembourg have brought home the ongoing concern of climatic imbalance attributed to human fallout.
Worldwide, we are all subject to the same storm and implicit stakeholders, and corporations and public and private institutions all have a big role to play. In Luxembourg, the Institut Luxembourgeois des Administrateurs (ILA) represents the voice of directors and actively engages with organisations to introduce, apply, and oversee Corporate Governance rules and practices, and train effective company directors.
In ILA’s January 2021 response to the EU’s Consultation on Sustainable Corporate Governance, we emphasised the acute need to promote Environmental, Social and Governance (ESG) awareness and acceptance in everyday business.
Today, in our response on the EU’s Corporate Sustainability Reporting Directive (CSRD), we reiterate the importance of EU regulations and guidelines in the area of sustainability-related governance and reporting to be principle-based and easily adoptable.
As boards and directors play a critical role in corporate evolution and action, we believe that there is a need for them to PIVOT. We strongly believe that boards need to:
As part of our efforts to create awareness around our responsibilities and to establish foundations such as Sustainability Advisory Boards (SABs), together with IMS, we will be scheduling a series of roundtable sessions with various stakeholders to come up with immediate and impactful ESG-related calls to action. We will also be discussing suggested approaches on this matter at the ILA Directors’ Day on 16 November 2021.
As part of this update, we have included links to the EU consultation and ESG-related work ILA has done to date. Thank you for your interest and participation as we collectively weather the storms.
Chair of the Luxembourg Institute of Directors (ILA)
Chair of the ILA EU Sustainable Governance Sub-Committee
ILA Executive Summary responses to the EU Consultation requests on: