An accountancy advisory body set up by the European Commission (EC) has been asked to draft a set of unified standards to underpin European corporate sustainability disclosures and could find its role enlarged as a result.
If taken up, the standards will be mandatory for corporate disclosures made under the Non-Financial Reporting Directive (NFRD), which is now being revised under the EU Action Plan on Sustainable Finance, to improve the quality of reporting.
In its current guise, the NFRD requires companies to disclose their performance on four sustainability issues – environment, social and employee issues, human rights, and bribery and corruption – but does not introduce a specific reporting standard or identify detailed disclosure requirements such as lists of indicators per sector.
While the EC is yet to decide whether or not to introduce reporting standards for the NFRD, it has emerged as a key consideration of the ongoing review. Ma…