Corporate Non-Financial Disclosure

Eurosif believes that EU policy-makers should mandate extra-financial disclosure, including some relevant key performance indicators, and incentivize best practices. Extra-financial (“ESG”) data is relevant material information that investors should have and increasingly want as a means to better gauge longer term investment risks and opportunities of investee companies. It is increasingly understood that financial statements capture less than 20% of corporate risks and value creation potential.

Further, there is mounting academic evidence that there is a direct correlation between sustainable business practices and the longer-term financial success of that company. For investors, material, timely, and comparable extra-financial information across companies remains therefore crucial in order to make valid mid- and long-term investment decisions. This could lead to a virtuous circle where investors would reward stock prices where sustainability is integrated, and companies would respond by further improving their sustainability performance.

The key elements that ESG reporting should address are how company strategies are designed to address non-financial risks and how financial results are affected by those risks – a forward looking approach that allows interested stakeholders and especially investors to improve company valuation models.

Policy Updates:

Eurosif responds to the NFR guidelines

Today, the 26th of June, the Commission formally adopted guidelines on the disclosure of environmental and social information. These guidelines will ...

Eurosif welcomes new report published by FSB’s Task Force on Climate-related Financial Disclosures

Today the FSB’s Task Force on Climate-related Financial Disclosures issued its landmark report with a set of recommendations, applicable to ...

Mapping the sustainability reporting landscape: Lost in the right direction?

Eurosif's Executive Director, Flavia Micilotta, joined a recent ACCA-CDSB roundtable to discuss the relevance of non-financial reporting to responsible investment ...

Eurosif June Insight – The UNGP Reporting Database

The UN Guiding Principles Reporting Database was developed by Shift in support of the UN Guiding Principles Reporting Framework, a ...

Eurosif – GRI Joint Statement on Commission’s Guidelines on Non-Financial Reporting

06 May 2016 - GRI and Eurosif welcome the European Commission consultation on the non-binding guidelines on methodology for reporting ...

Eurosif’s response to the Task Force on Climate-Related Financial Disclosures Consultation

Today, Eurosif submitted its response to the Task Force on Climate-Related Financial Disclosures Consultation, stating that the key challenges the ...

Eurosif responds to non-financial reporting guidelines consultation

Eurosif has submitted a response to the European Commission's public consultation on non-binding guidelines on methodology for reporting non-financial information ...