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.
Industry sectors covered by the instrument
Organizations covered by the instrument
Type of instrument
Mandatory or voluntary
The geographical scope
International/regional (eg. EU)