EC adopts non-financial reporting guidelines

EC adopts non-financial reporting guidelines

EC adopts non-financial reporting guidelines 150 150 ECIIA

The EC has adopted guidelines to help companies make better disclosure on the environmental and social impact of their activities.

The guidelines aim to help companies develop their non-financial reporting in ways that are more consistent and comparable. The EC says it wants to boost corporate transparency and performance, as well as encourage companies to embrace a more sustainable approach.

“Europe needs to take the lead in making economies greener and more sustainable,” Valdis Dombrovskis, Vice-President responsible for Euro and Social Dialogue, Financial Stability, Financial Services and Capital Market Union, said: “By providing relevant information on their environmental and social credentials, companies are doing themselves a favour and helping their investors, lenders and society at large.”

Meanwhile, the EC’s high-level expert group on sustainable finance has published its first report setting out concrete steps to create a financial system that supports sustainable investments. The Commission intends to explore some of the report’s recommendations that may help create a low carbon, more resource-efficient and sustainable economy.

“It will be very important for organisations to have robust processes underpinning their non-financial reporting systems,” Henrik Stein, ECIIA President, said. “Internal audit’s unique oversight position as the third line of defence gives it a critical role to play in helping organisations improve their non-financial reporting capabilities.”

The adoption of the new guidelines will supplement the already existing EU rules on non-financial reporting (Directive 2014/95/EU). Companies falling within its scope have to disclose relevant information on policies, risks and results as regards environmental matters, social and employee-related aspects, as well as respect for human rights, anti-corruption and bribery issues, and diversity on the boards of directors.

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