Sunday, March 23, 2014
In light of E.U. action, SEC Urged to Make Sustainability Reporting a Top Priority
Noting that the E.U. Parliament and Council of the European Union recently reached agreement on legislation requiring the reporting of non-financial information, such as on the environment and board diversity, the Forum for Sustainable and Responsible Investment urged the SEC to enhance mandatory corporate environmental, social and governance disclosure and make sustainability reporting a top priority at the Commission. In a letter to the SEC, the Forum said that there is an increasing demand from international investor and accounting bodies for corporate sustainability reporting. The E.U. Parliament is expected to approve the sustainability legislation in April, after which the Council will formally adopt it. The Forum also noted that the Toronto Stock Exchange and the Chartered Professional Accountants of Canada recently issued guidance on environmental and social disclosure, which discussed principles for environmental and social business conduct, mandatory disclosure requirements, developments in key performance indicators and other global initiatives to advance sustainability disclosure.