Mandatory reporting standards and corporate responsibility

Information on mandatory reporting guidelines that measure corporate responsibility performance

In the last decade, some countries have imposed mandatory guidelines for companies relating to corporate responsibility issues.

These relate to either annual or corporate social responsibility reports.

They are designed to enable a standardisation in the quality and quantity of data disclosed and to encourage the integration of financial and environmental reporting procedures.

Some examples are outlined below:

EU Accounts Modernisation Directive (EU AMD)

Qualifying companies are all listed and non listed large and medium sized companies in EU member states.

They are required to report on environmental and community issues when these are considered material to an understanding of the company’s performance, position and development.

The regulations also require large qualifying companies to report on relevant environmental and employee matters using financial and non financial key performance indicators.

The aim of the EU AMD is to:

• Improve social and environmental performance of EU companies
• Build trust with stakeholders; and
• Increase the comparability of reporting practice between companies in the EU through a common reporting framework.

• UK Companies Act, 2006

  The UK Companies Act is the UK vehicle to comply with the EU Accounts Modernisation Directive (see above) and applies to all UK listed companies.

  The Act introduces a fiduciary duty. It is a duty for directors to promote the success of the company in the collective best interests of members or shareholders.

  The act states that companies should consider the environmental and social interests of wider stakeholder groups as these have a material impact on long term shareholder value

• Sarbanes-Oxley Act

  In the USA, the [Sarbanes-Oxley Act of 2002] has increased the financial reporting requirements of corporations with listed on the New York Stock Exchange.

  It demands that companies include provision for potential risks that could influence investor confidence. This can be understood as including corporate responsibility risks

• Landmark reports, policies and legislation

  Read more on about seminal reports and landmark policies and legislation which have played a crucial role in moving the sustainability debate forward.

• Read the global legislation list.

  We have put together some examples of legislation relating to sustainability from around the globe. Please note this is not a fully comprehensive list, we urge you to visit the government website (below) for up-to-date legislative updates.

• Legislative updates

  Track changes discussions in parliament on issues relating to sustainability and climate change by visiting the government website. It gives details of recent reports produced by the committees of both houses and other selected parliamentary committees.