Twelve stakeholders representing different sectors joined together on Monday 22 June in a joint statement to make recommendations to the European Commission for the revision of the Non-Financial Reporting Directive (see EUROPE 12430/22).
ACCA, Accountancy Europe, the Association of German Banks (BdB), CDSB, EFAMA, Frank Bold, IIGCC, Schroders, ShareAction and WWF - which have formed an informal group on sustainable finance - as well as BNP Paribas AM and Candriam recommend that the Commission should extend the scope of the Directive beyond large listed entities to cover all companies that have a significant impact on the environment and society as a result of their economic activities and business model.
Organisations also support the inclusion of non-financial information in the annual management report. In their view, this could help to improve the connectivity between financial and non-financial information and provide stakeholders with as much information as possible on a company's performance, risks, future developments and impact on the environment and society.
They also see a need for enhanced disclosure on social issues, including human rights, employee issues, health and safety, as well as governance issues such as the overview of non-financial risks and opportunities by the Board of Directors and management.
According to these organisations, the Commission should also consider minimum mandatory reporting requirements to ensure “comparability, consistency and reliability”.
See the joint statement: https://bit.ly/37WSkHp (Original version in French by Marion Fontana)