The European Commission has proposed new requirements for non-financial information disclosure for all large companies in the EU. Investors are increasingly interested in assessing the environmental, social, and governance (ESG) performance of the companies in which they invest. The proposed reporting regime aims to gather the views and opinions of the investment community on their use of ESG information. The report also discusses the sources of non-financial information used by investors today, the adequacy of current non-financial reporting by European companies, and the topics that non-financial reporting should cover. The report also proposes the form that non-financial disclosure should take and the accountability mechanisms that should be applied to non-financial information. The report concludes by suggesting which companies should be required to produce non-financial reports and the implications for policy makers.
