Although companies are increasingly reporting on ESG matters, relevance, quality and comparability of the reported information needs to improve in order to meet the stakeholder expectations.
Today’s economy needs to undergo a radical transformation to achieve a climate-neutral and sustainable economy. The availability of high-quality data on environmental, social and governance (ESG) matters is the cornerstone to realise such a shift as it is the basis for sustainable decision-making. Better non-financial information will improve the assessment of ESG risks and opportunities and will eventually lead to sustainable investments.
As a first step in this direction, Accountancy Europe recommends revising the Non-Financial Reporting Directive (NFRD) to strengthen non-financial reporting requirements:
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Expand the scope of the NFRD beyond large public listed entities
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Indicate a minimum set of mandatory reporting criteria
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Require companies to disclose their non-financial information in the annual management report
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Introduce minimum reporting criteria for forward-looking disclosures
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Ensure the reliability of reported information
Full press release on Accountancy Europe
Sustainable finance call to action
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