Good governance

7. Good governance

The Ardo family business has evolved significantly during the last six decades. Since the merger between the two family branches of the second generation in 2014, the family has been working consistently to build a professional governance structure, and prepare the transition to the third generation. In 2021, Ardo appointed the company’s first external Chairman of the Board – Mr. Jules Noten - and an external Dutch CEO - Mrs. Gabrielle Kalkwijk - has led the management team since October 2019. The team consists of experienced professionals, including several members of the third generation.

As a privately owned company, Ardo is exempt from the reporting requirements imposed on public interest entities, or listed companies, trading on a regulated market. However, in accordance with the Belgian Corporate Governance Code, the board of directors set up the Audit Committee. This committee, chaired by one of Ardo’s non-executive board members, keeps an eye on financial risk and internal controls.

Supported by the company’s management, the Audit Committee also assesses non-financial risk and ‘double materiality’ impact for Ardo, taking into account the company’s business plan as well as its influence on society and the environment at large.

With an increased emphasis on climate in both business and society, Sustainability Risk Management (SRM) is becoming increasingly important. We use SRM to maintain the proper balance between our company’s sustainable growth goals and the preservation of nature’s gifts and the environment. Ardo’s SRM ensures that our business strategy, green strategy, and sustainability KPIs are in sync. Ardo strives to minimise any negative environmental impact by, for example, lowering use of natural resources and carbon emissions as well as carefully controlling the use of plant protection products. The Audit Committee’s evaluation demonstrates close alignment between our sustainability objectives and profit targets, and it endorses the sustainability goals that we are working towards.

In November 2022, Ardo successfully concluded its first sustainability-linked loan (SLL), with the main objective to harmonize and simplify the company’s debt structure and make the company financing future proof.

This deal fits in Ardo’s Horizon 2025 strategy, which is based on a value-driven approach and focusing on sustainable growth and improving profitability. Based on Ardo’s dual ambition to feed the future whilst protecting nature’s gifts, sustainability is strongly embedded throughout the company’s strategy and day-to-day decision-making. With this deal we are incorporating sustainability in our finance strategy. This approach was very well received by the lenders. The set-up of this SLL is linked to two environmental KPIs, i.e. Carbon footprint reduction (scope 1&2) and Residue-free product, impacting the financing margin grid.

In preparing this sustainability report, Ardo has documented its past and present performance, and shone a light on what the company has already achieved and where the company can still improve, in order to create positive economic, environmental and social benefits.