The overwhelming majority of investors want European companies to be more consistent and transparent in their non-financial reporting, according to a survey by Eurosif and ACCA (the Association of Chartered Certified Accountants).
Ninety-three per cent of investors surveyed for the report What do investors expect from non-financial reporting? [1] called for greater consistency and transparency, while 84 per cent of respondents agreed established standardised reporting frameworks need to be used by companies to achieve both those aims.
Other key findings of the survey were:
Gordon Hewitt, ACCA’s sustainability advisor, said: “The European Commission proposed new requirements from non-financial disclosures from all large companies in the EU back in April.
“The feeling of the survey’s results is that policymakers could improve upon the Commission’s proposals by looking at introducing mandatory ESG KPIs; encouraging the use of and harmonisation of existing reporting frameworks to increase comparability; and improve accountability mechanisms for non-financial information.
“There was also the opinion that companies affected by this proposed legislation would benefit from guidance on how to put these new measures into practice,” said Gordon Hewitt.
François Passant, Executive Director of Eurosif, said: “Looking at non-financial aspects of an investee company is becoming the new norm for investors and one has just to look at the spreading of ESG integration practices to realise this. However, a disconnect exists between company’s non-financial reporting and investors’ expectations as highlighted by the survey. The Commission’s recent proposal represents a unique opportunity to bridge this gap but needs to be strengthened in some areas. By doing so, we are confident that Europe would bolster its competitiveness.”
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For more information, please contact:
Alana Sinnen, ACCA Newsroom
alana.sinnen@accaglobal.com [4]
Helen Thompson, ACCA Newsroom
helen.thompson@accaglobal.com [7]
Notes to Editors
1. ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants. We aim to offer business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management.
2. We support our 162,000 members and 426,000 students in 173 countries, helping them to develop successful careers in accounting and business, with the skills required by employers. We work through a network of over 89 offices and centres and more than 8,500 Approved Employers worldwide, who provide high standards of employee learning and development. Through our public interest remit, we promote appropriate regulation of accounting and conduct relevant research to ensure accountancy continues to grow in reputation and influence.
3. Founded in 1904, ACCA has consistently held unique core values: opportunity, diversity, innovation, integrity and accountability. We believe that accountants bring value to economies in all stages of development and seek to develop capacity in the profession and encourage the adoption of global standards. Our values are aligned to the needs of employers in all sectors and we ensure that through our qualifications, we prepare accountants for business. We seek to open up the profession to people of all backgrounds and remove artificial barriers, innovating our qualifications and delivery to meet the diverse needs of trainee professionals and their employers.
Links:
[1] http://www.accaglobal.com/content/dam/acca/global/PDF-technical/sustainability-reporting/tech-tp-wdir.pdf
[2] tel:%2B%2044%20%280%29%20207%20059%205807
[3] tel:%2B44%20%280%29%207715%20812120
[4] mailto:alana.sinnen@accaglobal.com
[5] tel:%2B44%20%280%2920%207059%205759
[6] tel:%2B44%20%280%297725%20498654
[7] mailto:helen.thompson@accaglobal.com