23 March 2016 — Consultation Response
The Federation of European Accountants has responded to the European Commission‘s consultation on long-term and sustainable investment, which seeks to establish the role of environmental, social, governance (ESG) issues in investment decisions and to identify if any obstacles exist to longer-term, sustainable investment.
The annual report, the integrated report or other ESG reports are the main source of information for investors on ESG matters. We believe that the issue for investors is not so much the costs of obtaining the information but rather the potential quality and comparability of the information. We think that external assurance of ESG information is vital to add credibility to external stakeholders as to the relevance and reliability of such information.
The Federation considers that companies taking into account ESG considerations are more likely to take a long term view of their business, thereby providing the potential for higher investment returns without higher risk.
Public consultation on long-term and sustainable investment