Alliance for Corporate Transparency publishes joint position on the reform of the EU Non-Financial Reporting Directive

The members of the Alliance for Corporate Transparency (including CDSB) have combined their expertise and aligned positions on the key priorities for the reform of the EU Non-Financial Reporting Directive and development of standards on corporate sustainability disclosures.

Improving the quality of corporate reporting is critical to achieve the EU goals set out in the EU Green Deal and Sustainable Finance Action Plan. Corporate data on sustainability issues is essential to allow financial actors to redirect capital flows towards sustainable investments, ensure better management of risks stemming from climate change, environmental degradation and social issues by companies and investors alike and contribute to increased corporate accountability for serious adverse impacts on the environment and society.

Among the key recommendations, NGOs call for: an expansion of the scope; the clarification of the double-materiality definition and principles; a better definition and connectivity of general reporting requirements in the Directive; the specification of thematic and sector-specific reporting requirements for climate, natural resources and biodiversity, workforce information, human rights and environmental due diligence, and anti-corruption disclosures. For further information: http://bit.ly/3nryAmo

Outline of recommendations developed in further detail in the joint position include:

  1. Expansion of the scope of the EU Non-Financial Reporting Directive 

  2. Alignment with the annual report 

  3. Clarification of the double-materiality definition and principles 

  4. Reporting requirements on governance and sustainability integration 

  5. Better definition and connectivity of general reporting requirements in the Directive 

  6. Specification of thematic and sector-specific reporting requirements for climate, natural resources and biodiversity, workforce information, human rights and environmental due diligence, and anti-corruption 

  7. Requirement for mandatory assurance

These proposals have been discussed and developed as part of the Alliance for Corporate Transparency, including the input and support from the following organisations:

  • Management and content partners: Frank Bold, Business and Human Rights Resource Centre, Future-Fit Foundations, WWF EU Office, Transparency International, Sustentia
  • Advisory group: CDP Europe, Themis Research, Germanwatch, SOMO, CORE Coalition, Oxfam, ShareAction, CDSB, Publish What You Pay, ECCJ, Global Witness