European directors’ association ecoDa says standardisation of data to aid comparability may not result in more sustainable companies.
The European Union is attempting to improve non-financial reporting, but it has already received a warning. Indeed, officials have been told that standardisation of company information and metrics primarily promotes the interests of large institutional investors and could lead to “green washing” and “box-ticking”.
The EU’s Non-Financial Reporting Directive (NFRD) was intended to improve sustainability reporting across Europe’s publicly listed companies. Last month, however, a full review of the rules was ordered following a series of complaints that reporting against the directive was poor and failed to provide comparable infor
For thoughtful journalism, expert insights on corporate governance and an extensive library of reports, guides and tools to help boards and directors navigate the complexities of their roles, subscribe to Board Agenda