Joint statement on the reform of the EU legal framework on corporate transparency on sustainability matters

The current COVID-19 crisis has shown how economic, social and environmental aspects are interlinked and the need to put in place the right tools and incentives for each stakeholder from both public and private sector to play its role. The European Commission indicated in its recently published consultation on a renewed Sustainable Finance strategy that companies should prioritise key stakeholders’ long-term interest. We see the revision of the Non-Financial Reporting Directive as an important element of achieving this.

As a group of stakeholders with different backgrounds, but a common interest in sustainable finance, we believe the following matters are instrumental in the upcoming revision of the NFRD to make a leap forward in improving the quality, comparability and consistency of information on environmental, social and governance matters:

1. Expand the scope beyond large listed companies
2. Disclose non-financial information in the annual management report
3. Strengthen the social and governance aspects
4. Develop minimum mandatory reporting requirements
5. Build on existing reporting initiatives (to achieve comprehensive non-financial reporting)
6. Keep up the international role for reporting standards
7. Ensure legislative consistency and avoid duplication of reporting legislation

You can read the full statement, which includes further details for each of the above recommendations below.

*The group is formed by ACCA, Accountancy Europe, Association of German Banks (BdB), CDSB, EFAMA, Frank Bold, IIGCC, Schroders, ShareAction, WWF who came together in an informal platform for collaboration and discussion on crucial EU policy issues on sustainability. The statement was also supported by BNP Paribas AM and Candriam (while not being part of the informal group itself).