Eurosif Submits Response to EC Consultation on Non-Financial Reporting

Source: Eurosif, 29 January 2011

Eurosif submits its Response to the European Commission consultation on non-financial reporting by companies. We would like to extend our thanks to Eurosif’s Lobbying Advisory Group, Board and to all the Member Affiliates that provided us with input in drafting the Response to this important consultation process.
Eurosif reinforces its position on the following issues:

Large listed and non-listed companies should be required to disclose non-financial information in their annual (management) reports; additionally, Eurosif recommends the adoption of ESG reporting recommendation guidelines for small and medium enterprises;
Mandatory ESG reporting by companies should be based both on principles and key performance indicators (general for all economic sectors and sector-specific);
The main scope of the legislation review should be the EU Accounts Modernisation Directive which currently favours only a “comply or explain” approach on ESG disclosure;
Investors should be mandated to disclose how they use non-financial information published by companies in their investment decisions;
The European Commission should work towards coordinating the existing initiatives in the area of ESG reporting and come up with a common European framework.

Download Eurosif's Response (pdf)