Members of the European Parliament have today cast their final votes in favour of new legislation that received overwhelming support in the Legal Affairs Committee earlier this year. The new rules will apply to public interest entities with more than 500 employees and will require them to report on their social and environmental performance, respect for human rights, anti-corruption and bribery matters. Certain large undertakings will have to disclose their diversity policy, including information on the age, gender and educational and professional backgrounds of their directors.
Richard Martin, head of corporate reporting at ACCA, says: 'The Directive is mandating disclosures by these companies on specific issues that are important to the society in which they operate. However it will create a legal environment that is consistent and will provide no obstacle to the more extensive reporting under national initiatives such as the Strategic Report in the UK or Integrated Reporting internationally. ACCA research Understanding Investors, based on a survey of 300 investors, showed strong belief in the importance of non-financial reporting and the value of companies combining financial and non-financial information into an integrated reporting model.'
'About 6,000 large undertakings will join companies across the European Union that have already voluntarily chosen to publish their businesses’ impact on society. ACCA strongly welcomes the legislation on non-financial information reporting that underlines the focus on greater corporate transparency and contributes to inclusive and sustainable recovery' concludes Richard Martin.