This explorative research examines the growing role and organisation of sustainability committees at supervisory board level of Dutch listed companies.
Recent EU initiatives—such as the CSRD, ESRS, CSDDD and Omnibus packages, bring new obligations for companies operating within the EU. This requires companies to prioritise sustainability and to incorporate it in their strategies, disclose more information about their impact on society, the environment, and human rights and to comply with legal obligations. On the other hand, it allows stakeholders to make more informed decisions and hold companies accountable for their actions. It is therefore important for businesses, and specifically boards, to understand and comply with the requirements outlined in the directives and to govern and organise their (legal) tasks and responsibilities around sustainability in an effective manner.
This explorative research investigates the existence of separate sustainability committees at supervisory board level at listed companies in the Netherlands and how they are organised. The findings described in this article are based on data derived from publicly available information and information from Dutch listed companies based on their annual reports over their reporting years 2022 and 2023. This research shows that 25% of Dutch listed companies have established a separate sustainability committee at supervisory board level in 2022 and 36% in 2023. If we only look at the companies listed at the AEX, 40% of listed AEX companies in The Netherlands have such a committee in 2022 and 52% in 2023.