Bart-Adriaan de Ruijter: Future-proof companies make ESG top priority

ESG has become a strategic priority in the boardroom in recent years, says Bart-Adriaan de Ruijter, member of the ESG task force at CMS, in an interview with FD De Wereld in 2023. Companies pay attention to 'Environmental, Social, Governance' issues partly out of risk considerations. They recognise that if they do something that does not please stakeholders such as consumers, NGOs and investors, they risk losing their 'license to operate'. So, they would do well to pay attention to long-term value creation, adopt a socially responsible policy and avoid excessive pollution and waste. Moreover, research shows that forerunners with a focus on ESG (purpose) not only enjoy reputation benefits, but are above all commercially successful.

The importance of a good ESG policy will increase in the coming period due to increasingly strict laws and regulations in the ESG field. For instance, starting 2024 many large companies in Europe must comply with the new Corporate Sustainability Reporting Directive (CSRD), and the Corporate Sustainability Due Diligence Directive (CSDD) is coming up in a few years. Regulators (and other stakeholders) are increasingly assessing companies' compliance with climate commitments and suing them if they are lacking ('ESG litigation').

It is not clear when all the changes they will be implemented exactly, but why wait? 

"It is best to proactively prepare for that now and not wait for the legislation. It benefits the future-proofing of the company."

Bart-Adriaan de Ruijter

View the full article here (in Dutch).