News

8 October 2020

Accountancy Europe welcomes EU sustainable corporate governance initiative

Environmental and social risks significantly impact all our lives. Accountancy Europe welcomes the EU initiative to further embed sustainability into the EU corporate governance framework and provided feedback on its roadmap. To deliver on the Paris Agreement and the EU Green Deal, businesses need to become accountable for their impacts on the environment and society.

Sustainable finance has a key role to play in the transition. Clear, consistent, and evenly enforced legislation across countries is key to ensure that sustainability is fully embedded into corporate decision making.

Thought leadership ideas 1 year ahead of EU action

The economy needs to change radically to achieve climate neutrality and sustainability. In June 2019, 10 ideas to make corporate governance a driver of a sustainable economy already highlighted the instrumental role of corporate governance in changing the system.

We are happy to see that the EC roadmap on sustainable corporate governance  covers many of the ideas this publication had presented 1 year ahead. Our feedback recommends the following points for the EC to even further improve its sustainable corporate governance legislation:

  1. Integrate sustainable value creation into the board’s duties
  2. Set effective mechanisms to verify due diligence disclosures on the environment and human rights
  3. Expand the legislative scope to all companies that significantly impact the environment and society, regardless of their size
  4. Align non-financial information (NFI) reporting with sustainable corporate governance

What accountants can do for sustainable corporate governance?

Professional accountants play a crucial role in their different capacities at all stages of corporate governance. As good business decisions start with reliable information, accountants contribute by measuring impacts, disclosing information, and adding credibility to what is reported. Auditors can add value by providing assurance on corporate governance, internal controls, and sustainability reporting.

We will keep contributing Accountancy Europe’s expertise and thought leadership to advancing the EU ambitious agenda for climate neutrality and sustainability.

Related content

NewsEU Corporate Sustainability Due Diligence Directive: a global milestone that will need further clarity

24 February 2022

EventReducing corporate fraud risk: European perspectives

8 December 2022

PublicationAudit committees’ role in fighting fraud – Recommendations

30 November 2022

UpdateSustainability

25 November 2022

PublicationFAQs: all you need to know about the Corporate Sustainability Reporting Directive

23 November 2022

NewsEFRAG SRB issues first set of draft EU Sustainability Reporting Standards

23 November 2022

PublicationComparing European corporate governance models

17 November 2022

NewsNew SRB chair to further European sustainability reporting agenda

16 November 2022

EventSMEs’ sustainable transition: how to support it?

15 November 2022

PublicationSustainability education

14 November 2022

UpdateSustainability

28 October 2022

NewsEC’s proposal to ban products made using forced labour

28 October 2022

EventSustainable tax system: towards a green future

25 October 2022

PublicationSustainable tax systems – environment

24 October 2022

Consultation responseOECD’s consultation on the review of the G20/OECD principles of corporate governance

21 October 2022

EventMembers’ Engagement Day

19 October 2022

Consultation responseIPSASB’S consultation on natural resources

18 October 2022

Stories from practiceInsight from SME accountants: sustainability matters for the new generation

12 October 2022

UpdateSustainability

23 September 2022

Consultation responseIPSASB’s consultation on advancing public sector sustainability reporting

9 September 2022

Stories from practiceInsights from SME accountants: taking up the sustainability challenge to help SMEs

29 August 2022

Sign up for our newsletter

* indicates required
Would you like to subscribe to our newsletter?
On which topics would you like to receive news?