Results on the "Public consultation on Disclosure of Non Financial Information by Companies" executed by the Directorate General of Internal Markets and Services of the EU, have been published.
To share some insights:
First of all the summary shows the interest in CSR and social & environmental issues as it comes to non financial reporting. Second: Legal regimes differ a lot across the EU and the EU legislative framework lacks transparency. Third: Not administrative burdens, but potential costs for NFR are discussed, unless: the NFR adds value to proper business development and long term performance perspective. Then NFR is an investment and no burden at all.
In the summary is stated clearly that this consultative round does not directly lead to decision making at EU level.
Non financial reporting, if really used to better the companies strategic performance and business development, 1. should be easy to start with, 2. standardized and 3. affordable: that will make it doable to really leverage Non Financial Reporting as a way to work on long term success. What does this mean to you as a IC practitioner?