The European commission, parliament and council are close to agreeing legislation to require large companies to disclose non-financial information
In April 2013, the commission outlined its proposals to amend existing directives on accounting (78/660/EEC and 83/349/EEC), and force all companies employing more than 500 people and with a turnover of €40 million to include information on their environmental and social impacts in financial reports.
The changes would require businesses to include a statement on the impact of their activities on the environment and society throughout their supply chain and include descriptions of the risk posed, as well as policies they have in place to manage impacts and the results they achieve.
The European parliament’s legal affairs committee backed the proposals in December last year and negotiations have been ongoing between the parliament, commission and council – made up of representatives from member states.
Member states, including the UK, have been lobbying for the amendments to apply only to listed companies, as is the case with the UK’s mandatory reporting rules which came into force in October 2013.
Reports from The Accountant and Business Green, indicate that a final compromise is expected this week.
