The sustainability-related questions posed by the VBDO (Dutch Association of Investors for Sustainable Development) during annual general meetings of Dutch companies are making a real difference. This is the conclusion of new research conducted by professors Anne Lafarre (Tilburg University), Christoph Van der Elst (Tilburg and Ghent Universities), and Rieneke Slager (University of Groningen). According to the researchers, the right to ask questions has become a powerful tool for promoting sustainable business practices. The VBDO’s systematic approach plays a major role in this.
The researchers analyzed 3,000 questions, comments, and responses from 402 annual general meetings of Dutch publicly listed companies, covering the period from 2015 to 2023. VBDO was found to be the most active party in asking sustainability-related questions, accounting for 70% of such inquiries. The study distinguishes five types of shareholders: shareholder associations such as the VBDO and the VEB, institutional investors, NGOs, trade unions, and retail shareholders.
Structured Approach
According to the study, the VBDO employs a structured approach when formulating its questions: the association selects specific topics related to social policy, environmental policy, and corporate governance, conducts in-depth research, holds preparatory talks, and then formulates forward-looking, targeted questions. After the questions are asked, the responses are evaluated and made public by publication in VBDO’s annual AGM engagement report.
Positive Framing
The researchers point out that the strength of this method lies not only in the content of the questions but also in how they are framed. The questions are generally positively worded, respectful, and aimed at achieving concrete outcomes. In response, companies expressed intentions to, for instance, improve reporting on biodiversity, adopt better wage policies, or increase transparency about lobbying activities.
Transparency
VBDO makes such commitments public, tracks their progress, and holds companies accountable. Other shareholders can also use this information in their own evaluations and engagement strategies. In line with Dutch regulations, companies are required to publish detailed minutes of their general meetings, including the questions asked.
While VBDO plays a leading role in promoting sustainable business practices, institutional investors like PGGM and Robeco tend to focus on broader governance questions, typically aligned with the agenda of umbrella organization Eumedion. NGOs often bring an ethical perspective, particularly concerning climate and human rights. Retail shareholders tend to ask a wider variety of, often more informal, questions.
Conclusion
The researchers conclude that the right to ask questions is an effective tool for shareholders to influence sustainable corporate practices—particularly when applied in the strategic and consistent manner demonstrated by VBDO.
The research ‘Beyond the Ballot: How VBDO’s shareholder questions influence corporate sustainability’ is available via SSRN and will be published shortly in the European Business Organization Law Review.