EC Recommendation on recognition, measurement and disclosure of environmental issues in the annual accounts and annual reports of EU companies, 2001

EU Upcoming

The European Commission adopted a Recommendation on the recognition, measurement and disclosure of environmental issues in the annual accounts and annual reports of companies based in the EU. The Recommendation clarifies existing EU accounting rules and provides guidance to improve the quality, transparency and comparability of environmental data available in companies’ annual accounts and annual reports. The Commission argued that the lack of a common set of rules and definitions means that environmental information disclosed by companies is often inadequate and unreliable. This made it difficult for investors and other users of financial statements to form a clear and accurate picture of the impact of environmental factors on a company’s performance, or to make comparisons between companies.

Scope

General sustainability/ESG/non-financial

Industry sectors covered by the instrument

All/none specified

Organizations covered by the instrument

Type of instrument

Legislation

Mandatory or voluntary

The geographical scope

International/regional (eg. EU)

Project Partners