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EU corporate reporting law to promote sustainability

The European Commission will be announcing details of a new reporting law which requires large firms to provide information on the human rights, environmental and social influence of their activities when filing their financial accounts and reports.

It will be the first time that corporate social responsibility has been a requirement in such a way and business owners will require the help of an accountant for contractors, and other areas of commerce, to take the new law into account.

Richard Howitt MEP said that the move is a welcome one and it should be seen as a huge leap in making businesses accountable and sustainable. He said:

“Today less than one in 10 of Europe’s large companies disclose this information but the blinkers can come off on Tuesday for the remaining 90%. The law can play an essential role in incentivising environmentally sustainable companies and in rebuilding tarnished public trust in business.”

The draft law by the EU will be listed on the very day that the International Integrated Reporting Council releases the International Integrated Reporting framework for consultation. The IR is meant to urge companies to utilise current reporting guidelines and standards, including the Global Reporting Initiative’s Sustainability Reporting Guidelines, for CSR statements.

Howitt claimed that it is a matter of importance that the law is passed in such a way that matches these, as well as other international efforts, in order to encourage integrated reporting among businesses throughout the world to see a rise in commercial transparency.

IIRC draft consultation of the framework will occur until July 15th with a release date expected in December.

Posted by Louise
April 24, 2013
Small Business

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