Globalisation makes Dutch success Sustainability Indices an increasingly tough challenge

14 januari 2008

Dutch companies do well in the Dow Jones Sustainability World Index. Fifteen Dutch AEX-listed companies are on the index, the most recent newcomer being Wolters Kluwer (which was already included in the Stoxx). No less than four of these lead their sector (Akzo Nobel, TNT, Philips and Unilever). However, the competition is constantly growing and particularly companies from the “emerging economies” are vigorously asserting themselves.
I believe there are three reasons for the current success of Dutch companies. First of all, many Dutch multinationals already have years of experience developing and implementing their sustainability strategy. The Netherlands is an open economy, with a small home market and a high degree of internationalisation. Our multinationals therefore have many shareholders, employees and customers outside the Netherlands and realise that they need to have a good antenna for external developments. They are keen to know the key issues and concerns of their stakeholders, both for now and the future - and not only in the Netherlands, but all over the world. Sustainability helps them to continue achieving these ambitions in the globalising economy.
Moreover, Dutch companies are increasingly translating their sustainability ambitions into market-driven innovations. They perceive and actively pursue opportunities for new product-market combinations. The “green flagships” of Philips, the CO2 banking of Fortis, and the eco-efficient products of DSM and Akzo Nobel are all prime examples of this. As a result, the emphasis of sustainability initiatives is gradually shifting from the head office to the business units. Sustainability is increasingly becoming “business as usual”, particularly in those fields where the impact is measurable.
The third argument is that the Netherlands has an active government and civil society movement. NGOs have never shirked from confrontation and the corporate community has traditionally embraced dialogue. The government, for its part, has undertaken initiatives at all sorts of levels. Think, for instance, of the CSR benchmark introduced by the Ministry of Economic Affairs. The methodology may have been open to criticism, but it certainly helped to raise awareness and promote competition in the field of sustainability. The Dutch government’s involvement in bringing the Global Reporting Initiative to our country provides further testimony to the high level of ambition. And recent government pledges to make sustainability an “export product” indicate that this issue is set to remain high on the agenda.
Which is just as well. Because there is no reason for “The Netherlands Incorporated” to rest on its laurels. The DJSI is compiled on the basis of relative sustainability performance. So the bar is raised higher every year. Moreover, the competition is becoming increasingly international, with Australia, Germany, France, Japan, the United Kingdom and the USA all featuring prominently on the index. In other Western countries too, companies are not standing still and are eyeing a larger slice of the cake. As things stand, the number of companies from the “emerging economies” is negligible: only seven from Brazil and none whatsoever from China, Russia and India. But inevitably, sustainability is also being taken more seriously there. So it is only a matter of time before companies from these countries start asserting themselves. Clearly, globalisation is also changing the sustainability playing field and Dutch companies will need to stay on their toes to keep ahead. Which can only be a good thing!

 

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