NGOs call on the EU Commission to clarify the legal framework for corporate sustainability reporting
Over 20 leading NGOs working on corporate transparency have published a statement calling on EU policy-makers to define companies’ disclosure obligations on sustainability issues on the occasion of tomorrow’s high-level conference on the future of corporate reporting hosted by the European Commission in Brussels.
The statement asks the Commission to take action and develop the corporate sustainability reporting framework through the ongoing review of the EU Non-Financial Reporting Directive, for which NGOs are providing specific recommendations. These requests are supported by research studies that evidence the need to specify a mandatory baseline of disclosure requirements and metrics as well as increasingly frequent calls made by the European Parliament, civil society and the investor community for a standardised reporting framework.
Currently, there is wide divergence in corporate reporting practices, which leads to a significant gap in the quality and usefulness of the information disclosed by companies. This hinders investor decisions and engagement on sustainability issues (crucial in the Commission’s Action Plan on Sustainable Finance and related legislative files), as well as the role of civil society and public authorities with regard to corporate accountability.