As our world becomes more concerned with the social and environmental impact of companies, the call for transparency on companies’ performance is increasing. Equally, Europe’s investors are showing an increasing interest in the non-financial performance of companies, in order to understand their position and performance, and to factor this information into their investment decisions.
European Commission guidelines
It is in this context that the European Union adopted a Directive (2014/95/EU) aimed at enhancing the consistency and comparability of non-financial information disclosed by companies of 500+ employees. To offer further guidance as to such reporting on non-financial information, the European Commission is now working on a set of non-binding guidelines. EVPA has contributed to the resulting consultation.
As the companies primarily targeted by Directive 2014/95/EU are much bigger than the vast majority of EVPA’s members, EVPA limited its input to highlighting EVPA’s specific expertise acquired over the last years in the field of non-financial reporting; on impact management and measurement more specifically. Pointing to the important best practice that EVPA established together with its members in these areas, EVPA’s contribution indicated these frameworks should be useful and applicable to any type of company (regardless its size). It also highlighted the importance of the reporting to be useful, non-prescriptive, flexible, geared to general principles and proportionate to allow for enough flexibility and workability in this reporting.
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