Review and update of non-financial reporting rules are needed
Strengthening directors’ duties regarding long-term interests and sustainability
On Thursday, MEPs approved a non-legislative report calling for more sustainable business conduct and addressing shortcomings in existing laws.
Parliament wants upcoming corporate governance proposals from the Commission to include a series of mandatory obligations for companies and incentives to act rather than rely on the voluntary disclosure of information. A clear set of rules strengthening the duties of company boards regarding sustainability is also needed. The report was adopted with 347 votes in favour, 307 against and 42 abstentions.
Disclosing non-financial information
MEPs welcome the Commission’s commitment to review the Non-Financial Reporting Directive (NFRD) next year but reiterate their call to widen its scope to cover all listed and non-listed large undertakings established in the EU, including non-EU companies o
December 9, 2020 Simon Robinson, Director – Product Management at Moody’s Analytics
THOUGHT LEADERSHIP Moody s Analytics
The progress of industrial revolutions rarely follows a neat, linear path. Instead, we typically see periodic spikes of innovation, prompted by some external factor, followed by the introduction of standardized manufacturing processes yielding greater productivity and efficiency, and leading to a step change in industry norms. While images of smoking chimneys may not immediately resonate with the concept of ESG investment, there are many parallels. We find ourselves on the cusp of a period of transformation in this area specifically in how ESG investment is managed and supported.