From the Sector

The EU directive on the further development of sustainability reporting (CSRD) poses major challenges for companies and the public sector. Until now, the regulations have only applied to large capital market-oriented companies. However, far-reaching changes to sustainability reporting are expected when the CSRD is transposed into national law in 2024. The German Institutes of Textile and Fiber Research (DITF) are facing up to this challenge of external reporting and at the same time the responsibility for sustainable and resource-conserving science. The Textile Research Center has therefore set up a specialist department reporting to the Executive Board.

The DITF are reaffirming their commitment to sustainability with the appointment of the previous Head of the Competence Center Textile Chemistry, Environment & Energy, Dr.-Ing. habil. Thomas Stegmaier, as Chief Sustainability Officer (CSO). In addition to this new role, Stegmaier will continue to provide his expertise to the Competence Center Textile Chemistry, Environment & Energy as Deputy Head.

The task of the Chief Sustainability Officer is to develop solutions to reduce the DITF's energy and resource consumption, promote renewable energies and implement efficient energy use. The management team, the operational organizational units and all employees are involved in the process.

The CSO also acts as a driving force for both the Executive Board and the research departments to promote sustainability issues.

At the Annual General Meeting of Autoneum Holding Ltd on 24th March 2023, a clear majority of the shareholders approved the introduction of a capital band in the amount of approximately CHF 100 million net proceeds to finance the acquisition of Borgers Automotive. The proposal to waive the payment of a dividend for the 2022 financial year in view of the lower net result was also approved. In addition, Board member Rainer Schmückle as well as CEO Matthias Holzammer were given a farewell.

221 shareholders attended today’s Annual General Meeting of Autoneum Holding Ltd in Winterthur. 66.48 percent of the share capital was represented.

The shareholders approved the Annual Report, the Annual Financial Statements and the Consolidated Financial Statements for 2022. The proposal of the Board of Directors to waive the payment of a dividend for the financial year 2022 due to the lower net result was also approved by the Annual General Meeting.

In addition, the shareholders of Autoneum Holding Ltd granted discharge to all members of the Group Executive Board and the Board of Directors by a large majority of votes.

Chairman Hans-Peter Schwald and the other members of the Board of Directors Liane Hirner, Norbert Indlekofer, Michael Pieper, Oliver Streuli and Ferdinand Stutz were confirmed in office for another year. Hans-Peter Schwald, Norbert Indlekofer, Ferdinand Stutz and Oliver Streuli were re-elected to the Compensation Committee.

The consultative vote on the 2022 remuneration report was approved by 85.55%. The proposals for the remuneration of the Board of Directors and the Group Executive Board for the 2023 financial year as well as the other proposals were also approved by a large majority.

With 99.03%, a clear majority of the shareholders approved a capital band authorizing a capital increase of approximately CHF 100 million net proceeds. The purpose of the capital increase is to partially finance the acquisition of the automotive business of the Borgers Group announced by Autoneum on January 9, 2023. The Annual General Meeting also approved the other proposals of the Board of Directors for partial amendments to the Articles of Association.

Rainer Schmückle did not stand for re-election. He had been Vice Chairman of the Board of Directors, Chairman of the Audit Committee and member of the Strategy and Sustainability Committee since Autoneum became independent in 2011. CEO Matthias Holzammer, who will leave Autoneum for family reasons, was also bid farewell.

At the same time, Hans-Peter Schwald welcomed the new CEO Eelco Spoelder, who will take over the management of the Group from Matthias Holzammer on March 27, 2023: "With Eelco Spoelder, Autoneum gains an accomplished leader with many years of experience in the automotive supply industry. At Faurecia and previously at Continental, Mr. Spoelder has successfully proven that he can ensure strategic continuity and operational excellence even in a difficult market environment. I and the other members of the Board of Directors warmly welcome Eelco Spoelder and look forward to our future cooperation."

At a time when global food security is becoming a rising concern for governments around the world, the International Fund for Agricultural Development (IFAD) today announced a call to its 177 Member States to nominate candidates for the Fund’s next President.
 
IFAD is a specialized United Nations agency and international financial institution focused on the alleviation of rural poverty and hunger.
 
The President is IFAD’s most senior position with responsibility for leading the organization and chairing its Executive Board. Nominations for President can only be made by IFAD Member States and must be received by the Secretary of IFAD no later than 6 May 2022.
 
The President will lead IFAD at a crucial time. Fears that rising food and fuel prices - worsened by the current conflict in Ukraine - could lead to a global food crisis are running high, with the world’s poorest rural people likely to be hardest hit. Small-scale producers are already reeling from the impacts of the COVID-19 pandemic, droughts, cyclones and other natural disasters. Their incomes are expected to be affected by the rising cost of inputs and disrupted markets. This is also likely to have devastating and long-term impacts on their nutrition and food security.
 
IFAD plays a crucial role in increasing the resilience of rural small-scale producers to shocks, and ensuring that they can continue to grow food and earn incomes. The Fund’s investments in climate adaptation and sustainable food systems are helping to achieve the Sustainable Development Goals to eradicate hunger and poverty.
 
Following the nomination process, the appointment of the next President will take place on 7 July 2022 during the first special session of the IFAD Governing Council. The Governing Council is IFAD's principle governing body with full decision-making powers.
 
The President of IFAD serves a four-year term, renewable once. The newly appointed President will take office on 1 October 2022.

In view of the exponential worsening of the pandemic situation worldwide and the accompanying tightened travel and contact regulations, the consumer goods fairs Christmasworld, Paperworld, and Creativeworld are cancelled for January 2022 and Ambiente for mid-February 2022. The regionally-oriented trade fair Nordstil from 15 to 17 January 2022 in Hamburg will take place at the present time.

The easing of the pandemic situation that was still hoped for in December is no longer in sight. Instead, the situation is deteriorating worldwide with an enormous, unforeseeable dynamic. This extreme deterioration due to the spread of the Omicron virus in Europe and Germany currently makes it impossible for Messe Frankfurt, as organiser of the leading international trade fairs Christmasworld, Paperworld, and Creativeworld, as well as Ambiente, to keep their dates in Frankfurt at the end of January and in mid-February 2022.

The four events, consisting of Christmasworld with its focus on seasonal and festive decorations, Paperworld and Creativeworld with their product ranges for paper, office supplies, stationery and hobby, craft and artists' requisites and Ambiente with its cross-sector range of products for the table, kitchen and housewares, furnishing and decorative accessories, home furnishing concepts, gifts and fashion accessories, are the recognised leading trade fairs in their sectors and open the trading year in their respective segments. Even in a reduced numerical form, the four trade fairs would still have been the leading events worldwide for their respective product segments.

However, the exponential increase in the number of infections worldwide in a very short period of time and the accompanying multitude of developments and decisions that are clearly outside the organiser's sphere of influence have led to a significant deterioration in the general conditions and necessary prerequisites for holding the four leading trade fairs as major events of international relevance at the end of January and in mid-February 2022 respectively. These developments include the classification of Germany as a high-risk area and the associated travel warnings and international and intercontinental travel restrictions in countries such as India, Japan and the United States, as well as the corresponding quarantine obligations. Equally important are the steadily rising infection figures and the accompanying urgent appeal, among others by the Robert Koch Institute and the expert council of the German Federal Government, to continue to reduce contacts to a minimum and to cancel all major events. At present, there are even further international fears that the critical infrastructure will not be maintained due to the highly contagious Omicron variant. The majority of exhibiting and visiting companies at Christmasworld, Paperworld, and Creativeworld as well as Ambiente are currently reacting to this overall situation with travel and trade fair attendance bans for reasons of duty of care towards their employees to protect them from health risks. The global willingness to travel is dropping enormously at the moment.

There are no plans to postpone the event. Detlef Braun, Member of the Executive Board of Messe Frankfurt, explains: "Since the trend-oriented order cycles of the international consumer goods industry require an annual event at the beginning of the year, a shift to the second half of the year would not meet the needs of the exhibiting companies and visitors."

Nordstil to be held in Hamburg from 15 to 17 January 2022
In the interests of the sectors involved, the planning and implementation of Nordstil from 15 to 17 January 2022 is not affected. This trade fair will take place in the Free and Hanseatic City of Hamburg at this time due to other general conditions for local implementation. However, the extremely volatile situation is continuously reviewed and assessed in close exchange with the relevant local authorities and industry partners.

Messe Frankfurt's digital platforms for business success
Messe Frankfurt has already been actively helping retailers to help themselves since 2019 with Nextrade, the first order and data management platform for the home and living sector, and Conzoom Solutions, an information platform for the global consumer goods sector. "A second year without appropriate ordering, inspiration and networking formats poses considerable and in some cases existentially threatening challenges for retailers worldwide," Braun explains. "With our digital offers, we are specifically supporting our partners in industry and trade in this volatile situation. In addition, we will continue to put all our energy and optimism into safe and promising trade fairs. Because there is no substitute for meeting in real life."

Information on the planning of the Frankfurt consumer goods fairs for 2023 will be announced at the beginning of February 2022.

Following a thorough assessment by rating agency S&P adidas’ sustainability performance has received an outstanding evaluation. Assessed across Environmental, Social and Governance (ESG) dimensions, adidas was awarded with an ESG Profile Score of 79 out of 100. Combined with a strong Preparedness Score (+6), the company’s overall ESG Evaluation Score amounts to 85, placing adidas sixth in the entire S&P Global Rating Universe.

In its assessment, S&P emphasizes adidas’ industry-leading approach to innovation, supply chain management and consumer engagement. In particular, credit is given to adidas’ ambitions to scale the use of sustainable materials, to expand circular services and to deliver against ambitious net-zero emission targets. In addition to adidas’ strong control mechanisms over its supply chain ensuring fair and safe labor practices, the analysis also calls out the integration of a sustainability target into the compensation system of the Executive Board. The close interaction between the Supervisory Board and the Executive Board is seen as exemplary and supportive of the overall strategy execution.

Through its new strategy ‘Own the Game’ adidas expects to generate substantial cumulative free cash flow until 2025. The company plans to share the majority of it – between € 8 and € 9 billion – with its shareholders through dividend pay-outs as well as through share buybacks. In this context, adidas had launched a share buyback program in July which was completed successfully at the end of September. Between July 1 and September 30, 2021, the company bought back 1,851,522 shares for a total amount of € 550 million.

Against this background, the Executive Board, with approval of the Supervisory Board, has decided to launch an additional share buyback program. Starting on October 18, 2021, the company plans to buy back shares worth € 450 million until the end of the year. Taking into consideration the share buyback completed at the end of September, adidas will buy back shares in a total amount of € 1 billion in 2021. Including the dividend payment of € 585 million in May, the company will return nearly € 1.6 billion to its shareholders this year.

“The decision to launch an additional share buyback program reflects our strong financial profile as well as the successful start of the execution of our strategy ‘Own the Game’,” said Harm Ohlmeyer, CFO of adidas. “Regular share buybacks and dividends in the amount of between € 8 and € 9 billion are a key component of ‘Own the Game’. They will be complemented by returning the majority of the cash proceeds from the Reebok divestiture to our shareholders after closing of the transaction.”  

adidas intends to cancel most of the repurchased shares, which would reduce the number of shares and the share capital accordingly.