ACM: banks are allowed to collaborate with regard to sustainability reports
Dutch banks are allowed to collaborate for their sustainability reports and to increase the comparability thereof. As a result of this collaboration, investors, for example, will be able to make more-sustainable choices. These are some of the conclusions of the Netherlands Authority for Consumers and Markets (ACM) following a request of the Dutch Banking Association (NVB) to examine whether the collaboration is allowed under the competition rules. ACM does not see the collaboration having any negative consequences such as price increases or quality reductions. In the NVB’s initiative, banks work together on a data project, which seeks to explain some of the sustainability criteria (ESG criteria), on which banks need to report. In that context, they look at, for example, what data is needed, and what calculation methods are suitable and reliable to use. The collaboration is currently a pilot project, focusing on the transport, agricultural, and real-estate sectors.
Martijn Snoep, Chairman of the Board of ACM, adds: “Businesses are allowed to collaborate in order to realize sustainability objectives. If businesses have any questions about this, we will gladly answer them. Businesses that also wish to know if they can collaborate can take our collaboration test (in Dutch).”
Common interpretation of ESG criteria
Banks are increasingly obliged to report about sustainability, on topics such as climate, human rights, and working conditions. One such example is the Corporate Sustainability Reporting Directive (CSRD). The CSRD is a directive that stipulates that, from financial year 2024, more and more businesses are required to report on their impact on the environment, society, and governance, for example their CO2 emissions, water consumption, employee welfare, but also regarding afflicted communities, animal welfare, and anti-corruption. It is not always entirely clear how businesses should interpret all of these criteria in their sustainability reports. In addition, it is not always clear either what calculation methods and data sources can be used. At the moment, each bank tries to ‘reinvent the wheel’. This increases the risk of the banks’ reports becoming difficult-to-compare in the future, customers getting swamped with different enquiries, and the sector making too little progress on sustainability.
ACM has informally assessed the collaboration in accordance with its Policy Rule regarding ACM’s oversight over sustainability agreements, and has not found any objections. Participation in the collaboration is on a voluntary basis, and any bank that wishes to participate is able to do so. The participating banks do not exchange any competition-sensitive information, such as client data. The banks base the common interpretation of the ESG criteria on objective sources, which they list in the data scheme. This will ensure the process is transparent. Also, each bank draws up their own reports, decides for themselves on what ESG criteria they report or do not report and is free to deviate from the common interpretation in the data scheme.
ACM and sustainability
Sustainable products and consumption are important in the transition to a more sustainable society. ACM wishes to create the right conditions for promoting the transition to a more sustainable economy. ACM eliminates impediments, and offers opportunities where possible. That is why ACM answers the question under what circumstances competitors are allowed to work together for realizing sustainability objectives. In addition, ACM’s oversight over sustainability claims used by businesses helps in promoting that transition. Consumers must be able to make more-sustainable choices with confidence, and businesses that undertake sustainability efforts must be protected against businesses that compete unfairly by using misleading claims.
Collaboration test
If you wish to collaborate with another business and you wish to assess whether that is allowed under the competition rules, take our collaboration test (in Dutch). You have more latitude if your collaboration contributes towards sustainability, for example combating climate change or animal cruelty, preventing environmental pollution, or protecting human rights. With the collaboration test, businesses can assess (anonymously) whether or not a collaboration is allowed according to the competition rules.
More information about collaborations and sustainability can be found here: Arrangements between businesses regarding sustainability (in Dutch).