| Author (Corporate) | European Commission |
|---|---|
| Series Title | COM |
| Series Details | (2013) 207 final (16.4.13) |
| Publication Date | 16/04/2013 |
| Content Type | Policy-making |
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The Accounting Directives (hereafter the "Directives") deal with the preparation of annual and consolidated financial statements and related reports. In particular, Article 46 (1)(b) of the Fourth Directive provides that, where appropriate and to the extent necessary for an understanding of the company's development, performance or position, the annual report shall also contain non-financial information, including information relating to environment and employee matters. In addition, Article 46a of this Directive sets rules for the content of the corporate governance statement to be prepared by listed companies. The opportunity to improve the transparency of the social and environmental information provided by companies in all sectors, in order to ensure a level playing field, has been acknowledged by the Commission in the Single Market Act and was reiterated in the Communication "A renewed strategy 2011–2014 for Corporate Social Responsibility". This proposal delivers on one of the principal commitments of the renewed strategy. The Communication defines CSR as "the responsibility of enterprises for their impact on society". It acknowledges that its development should be led by enterprises themselves, and that companies should have a process in place to integrate social and environmental concerns into their business operation and strategy. Non-financial transparency is therefore a key element of any CSR policy. Enhanced transparency may help companies to better manage non-financial risks and opportunities, and thus improve their non-financial performance. At the same time, non-financial information is used by civil society organisations and local communities to assess the impact and risks related to the operations of a company. Moreover, it allows investors to take better account of sustainability considerations and long term performance. However, consultations have shown that only a limited number of EU large companies regularly disclose non-financial information, and the quality of the information disclosed varies largely, making it difficult for investors and stakeholders to understand and compare companies’ position and performance. This proposal sets therefore a requirement for certain large companies to disclose relevant non-financial and diversity information, ensuring a level playing field across the EU. |
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| Source Link | http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM:2013:207:FIN |
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| Subject Categories | Business and Industry, Law |
| Countries / Regions | Europe |
