Dutch companies commit to science-based net-zero climate targets

Dutch companies commit to science-based net-zero climate targets

Dutch companies commit to science-based net-zero climate targets

CEOs call upon others to join in the run-up to COP28

Bussum, 18 April 2023 – Today, 10 CEOs of leading Dutch companies commit to setting science-based targets, using the Net-Zero Standard of the Science Based Targets initiative (SBTi). In doing so, these companies are working toward aligning their entire value chain to operate in harmony with the Paris Climate Accord and contribute to limiting the rise of global temperature to 1.5°C. 

The statement was signed was during a CEO breakfast prior to the Purpose Day XL conference, led by the Vice-Chair of the United Nations Global Compact, Paul Polman. The companies that committed are: Intergamma, Trivium Packaging, Dura Vermeer, Koninklijke Ahrend, TBI, Verstegen Spices & Sauces, EVBox, Media.Monks, CSU, Tzorg, Zizo, and TAUW.

The companies are committed to setting near- and long-term emission reduction targets to reach net-zero GHGs emissions across their value chain by no later than 2050, independently validated by SBTi’s technical experts. This means making rapid emission cuts now, halving emissions by 2030. By 2050, these organizations must produce close to zero emissions and will neutralise any residual emissions that are not possible to eliminate. The SBTi Net-Zero Standard is currently the most ambitious goal companies can set and covers a company’s entire value chain. Most companies will require deep decarbonization of at least 90% to reach net-zero under the Standard.

Paul Polman: “The latest IPCC report is the strongest warning yet that only immediate, large-scale action can prevent a complete collapse of the climate. It is very hopeful that today these companies are committing to credible, measurable, and science-based targets to mitigate climate change as much as possible. Their call to all companies that have not yet set credible science-based targets to join, as well as their call for governments to help make ambitious corporate climate action business as usual, I strongly support.” 

Employer organization VNO-NCW supports this call to action and was present at the signing. “It is great that this new group of companies commits to becoming net-zero by 2050, and setting targets using a scientific standard for external validation. The private sector has committed to the Paris Agreement, and the use of SBTi increases public trust in that promise. SBTi is becoming the best-in-class in this regard,” says Focco Vijselaar, Executive Director of VNO-NCW.

Eneco was the first Dutch company to have net-zero targets validated by SBTi. The CEO As Tempelman clarified at the breakfast, “We have a responsibility to keep our earth livable for future generations, there is no ‘Planet B’. The latest science shows that we are in a race against time. Rigorous measures are needed now. I call upon all companies to be transparent in what carbon budget they are still allowed to emit that fits with the 1.5-degree emissions pathway for their sector. And based on this, implement an externally validated roadmap of climate actions to match it. Every company must take responsibility. Together we can make a difference.”

 

About SBTi

The Science Based Targets initiative (SBTi) is a collaboration between the CDP (Climate Disclosure Project), the United Nations Global Compact, World Resources Institute, and the World Wide Fund for Nature. Science Based Targets (SBT) provide a thorough analysis of emissions and reduction plans. The SBTi reviews and validates the targets for GHG emissions of companies independently, and according to the most recent climate science.

 

About the CEO breakfast

The CEO breakfast and the commitment of the attending companies was organized by UN Global Compact Network Netherlands, IMPACTING.today, Purpose Day XL co-organizer Folkert van der Molen (Van der Molen E.I.S.), and Charlotte de Voogd of H+K Strategies. The plant-based breakfast was sponsored by the Vermaat Group.

Want to comply with new EU legislation and prevent greenwashing? Focus on your company’s gender equality

Want to comply with new EU legislation and prevent greenwashing? Focus on your company’s gender equality

Want to comply with new EU legislation and prevent greenwashing? Focus on your company’s gender equality

If you work in the area of sustainability, chances are you have been closely following the recent developments in EU legislation. 

With the Corporate Sustainability Reporting Directive (CSRD) entering into force on 5 January 2023, and the EU Green Claims Directive being proposed on 22 March 2023, it is understandable that many companies are reviewing their business operations and taking steps to improve their sustainability.

Yet, the key to more sustainable business operations may not be to apply a green lens – but a gender lens.

A recent study reviewed 4.000 companies between 2005-2019 and found that companies with more female board members are less likely to greenwash than companies with less gender-diverse boards.

This seems to support research by the University of California from 2012, which found that having more female board members is associated with more sustainable business operations.

Improving your company’s gender equality will help you comply with the new EU Pay Transparency Directive, approved on 30 March 2023. 

Of course, wage discrimination based on gender is already illegal in the EU. Equal pay for equal work is one of the EU’s founding principles. Yet, the gender pay gap across EU countries still stands at around 13% and has only minimally decreased over the last ten years. 

This new directive will require companies to take active steps to help close the gender pay gap and to pay fines and compensate employees if they do employ wage discrimination. It also ensures that employees of any company, no matter how big, have the right to request gender-disaggregated information about individual and average salary levels for categories of employees doing the same work or work of equal value.

Do you want to help your company to be more sustainable and comply with new EU legislation? Now is the time to set and reach ambitious corporate targets for women’s representation and equal pay.

Need support to improve your company’s gender equality?

You’re in luck! UN Global Compact Network Netherlands just opened registrations for its new Target Gender Equality Accelerator. This free, 9-month learning program is designed to support participating companies of the UN Global Compact to set and reach ambitious corporate targets for women’s representation at all levels in the organization and ensure equal pay for work of equal value.

We will run this program together with our partner WOMEN Inc. to offer you the tools that you need to make tangible, meaningful progress towards gender equality within your business.

Want to learn more?

Join our local FAQ webinar on Tuesday, 16 May at 15:00 CEST where we will provide an overview of the program and answer your questions.

Register for the virtual Q&A session

Not a participant of the UN Global Compact yet?

This program is free and exclusively available for participating companies of UN Global Compact. Learn how you can join or book a 30-minute online meeting with our Participant Engagement Manager, Mónica Pascual.

Join the UN Global Compact

Gaining new insights through peer learning to tackle climate change

Gaining new insights through peer learning to tackle climate change

Gaining new insights through peer learning to tackle climate change

This year, UN Global Compact Network Netherlands is piloting two peer learning groups, one on Gender Equality and one on Climate Action. The goal is for the participating companies to learn more about these important topics, to dig into the challenges that they are facing, and to exchange best practices that can help overcome these challenges. This blog is the first of many in which we aim to capture our companies’ peer learning journey.

Expectations by the United Nations

The tone of the UN Secretary-General changed a lot recently. He made clear that there needs to be urgent and short-term action. Where COP26 mostly focused on the planning of actions that need to be taken, COP27 focused on the implementation question. We need to reach ‘net zero’ by 2050. But what does this mean? This means that a company’s total greenhouse gas emissions are less than or equal to the emissions it removes from the atmosphere. Companies are expected to have long-term targets with emission reductions of at least 90% by 2050. At that point, a company must use carbon removals to neutralize any limited emissions that cannot yet be eliminated. The Science Based Targets initiative has developed a Net-Zero Standard, to make sure companies’ emission reduction targets are in line with the Paris agreement.

Shared challenges

During the peer learning group session, there were a few moments when people were divided into different groups, so they could discuss challenges regarding the complex task of reducing a company’s emissions by 90%. A few examples of shared challenges are the difficulties with getting a complete overview of all emission factors in all scopes, how to use credible data, and how to get the C-suite and middle management onboard and on the same page. Increasing the scope 3 (all indirect carbon emissions) boundary requirements from 67% for near-term SBTs to 90% for long-term SBTs will be challenging, but it will also drive major opportunities to collaborate across the value chain to support suppliers and customers to decarbonize. Discussing these shared challenges with companies from different sectors can create new insights into this complex problem.

Priorities

During the first session, one of the goals was to get a good overview of the priorities that the companies want to work on throughout the year. A topic that came up several times had to do with processing data related to scope 3. From the conversations, the conclusion could be drawn that a useful database to fill in the important data is very much needed. This may be a practical question but very important nonetheless, especially when it comes to a company’s credibility. When a company is working on emission reduction, it is essential that they can actually prove through data how they reduce at scale across all scopes. There are more than enough standards and reporting frameworks (CSRD, GreenDeal, our Communication on Progress, etc.), but this can also be confusing. Other questions that came up included “how to make the organization (on different levels) learn about science-based targets” and “what realistic emission reduction strategies are there?”.

What’s next?

We will be discussing these questions regarding credible data, emission reduction strategies, and internal and external stakeholder management, in our upcoming peer-learing group sessions.

Learning about equity, a game about exclusion, and tips for inclusion

Learning about equity, a game about exclusion, and tips for inclusion

Learning about equity, a game about exclusion, and tips for inclusion 

This year, UN Global Compact Network Netherlands is piloting two peer learning groups, one on Gender Equality and one on Climate Action. The goal is for the participating companies to learn more about these important topics, to dig into the challenges that they are facing, and to exchange best practices that can help overcome these challenges. This blog is the first of many in which we aim to capture our companies’ peer learning journey.

Equity versus Equality

Earlier this month, we held our first gender equality session on the topic of “Inequality vs. Inequity”, hosted by one of the co-leading companies – Deloitte – in their Edge-office in Amsterdam.

Equality and equity are often confused. Equality refers to an equal distribution of resources and opportunities. The problem with this is that this implies everyone benefits the same from this support. This assumption is false since people’s starting position and therefore also their needs can differ. “Equity” acknowledges these differences and seeks to provide the required support they need to achieve the same equitable outcome. Ultimately, we as a society and our companies should strive for equitable outcomes to get to fair outcomes.

Deloitte co-leads: Hilary Richters , Karen Lampe & Jason Jie

But how do we get to equality?

Companies’ daily HR practices determine whether or not someone gets hired, promoted, or paid a specific salary. Associations with people’s genders, race, jobs often have the effect of putting people into different – unequal – social groups.

Jason Jie, Diversity, Equity and Inclusion Specialist at Deloitte Netherlands, explained that companies should ensure an inclusive environment that appreciates everyone’s unique, diverse characteristics and backgrounds. Companies should also reflect on their work culture, which could exclude certain groups of people.  

To get a better understanding of the feeling of exclusion, Jason prepared a simulation game around including and excluding behaviours. All participants were assigned roles by putting on a pair of glasses with a card, with numbers between 2 and 10 – so you could see each other’s numbers, but not your own. Everyone was given the task to only talk to people with high numbers – and ignore people with low numbers. During the evaluation of the game, everyone could effortlessly guess whether they had a high or low number. It made participants aware of the subtle behaviours we have at work where we may exclude people instead of making them feel welcome.

Interestingly, Jason noted that the social norm on what’s considered legitimate inclusion or exclusion changes over time. For example, an employee resource group for LGBTQIA+ people to share their experiences could be seen to legitimately include one group and exclude others. It’s therefore important to keep having dialogues on what inclusion means, and how it can contribute towards equity.

Companies’ best practices to promote equity 

Throughout the session, companies exchanged best practices to promote more inclusive, equitable work environments. For example, Deloitte has a Panel & Proposal Promise: they aim for panels and proposal teams to consist of 40% men, 40% women, and 20% of employees that belong to underrepresented groups. A different company shared that before they start an application process, they map the existing team and what traits or characteristics could help diversify the team. This could mean focusing on a different gender, ethnicity, or educational background, and considering whether people are extroverts or introverts. Another company shared that they promote a more diverse pool of applicants in a male-dominated sector by ensuring that if internal application processes don’t have at least 33% women  applicants, they will open up the position externally to reach this.

At the end of our session, our group of companies committed to implementing at least one inclusive practice in their business. We will reflect on how this went during the next session on April 13.

Five ways for a company to embrace equity

Five ways for a company to embrace equity

Five ways for a company to embrace equity  

Two years ago, AkzoNobel first signed the Women’s Empowerment Principles. Now on International Women’s Day 2023, with a new CEO ready to carry on the commitment, we’re reflecting on what it really means for a company to sign this document – because it’s not just a photo op. “Signing the Women’s Empowerment Principles is a natural extension of the AkzoNobel culture and the way we operate,” says Greg Poux-Guillaume, AkzoNobel CEO. “We are making encouraging progress towards gender equality, but it remains an ongoing journey from which we will not deviate. We owe it to ourselves, to our partners and to our communities.” Here’s a brief overview of five ways we’re building a more diverse and inclusive company:

1. Increase leadership diversity

AkzoNobel’s leaders understand the importance of representation that reflects the diversity of our organization. We’ve set a goal of achieving 30% female representation in senior executive roles by 2025. Currently, at 25%, we’re well on our way to increasing that number.

Diverse leadership teams bring a range of perspectives and experiences that help us make better decisions and respond more effectively to changing market conditions. So as part of striving for 50-50 gender representation in executive recruitment, we require hiring managers to put together diverse interview panels.

2. Mind the gender pay gap

We believe in equal pay for equal work – and we can prove it.

In 2022, an external review of our compensation practice found that after correcting for background variables, the annual pay gap was just 0.9% in favour of men. We’ll continue to review the data and our practices to do what we can to get even closer to equal pay.

3. Develop and retain female talent

A rebuild of our talent performance framework is currently underway to provide our top talent with more career growth opportunities. Designed through the lens of diversity and inclusion, special care is being taken to prevent bias.

Globally, many resources are already in place to make sure our work environments are inclusive and welcoming to all, including a D&I toolkit, team workshops and an ambassador network.

We’re also making structural improvements, with a €400,000 budget allocated to improve women’s facilities in our manufacturing and supply chain locations. This includes projects to enhance bathrooms, showers and changing rooms, as well as create lactation rooms. Smaller improvements can also have a big impact – for instance, we now advise our sites to provide properly fitted workwear for female employees.

4. Foster employee networks

Our employee-driven Women Inspired Network connects people of all genders who are interested in advancing gender equality. 

Organized into local chapters, the network is a place to learn, grow and empower each other to drive change. For example, our India chapter invited local leaders to reverse-mentor women, increasing awareness of gender-related challenges. For this International Women’s Day, an online event about parenting and work will encourage conversation at our sites around the world.

5. Empower women in local communities

One of our 2030 ambitions is to empower more than 100,000 people with new skills – including programs tailored specifically to women.

In Brazil, our “Mulheres na Cor” (Women in Color) program helps women transform their lives by breaking into the traditionally male-dominated vehicle refinishes and decorative paints industries. In another initiative, we started working with more than 500 women in rural India to promote entrepreneurship in decorative paints.

Our journey to gender equity continues

The five areas listed above represent just a few of the actions we’re taking to promote gender quality at AkzoNobel and in the communities where we operate. We’re highly motivated to keep learning and growing in this journey together – that’s embracing equity.

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