Accountancy Europe has called for revisions to the Non-financial Reporting Directive (NFRD), addressing the economy’s need to ‘undergo an urgent and radical transformation to achieve climate-neutrality and sustainability’.

The organisation noted that while companies are increasingly reporting on ESG matters, the ‘relevance, quality and comparability of the reported information needs to improve’.

  • As a first step in this direction, Accountancy Europe has recommended five steps to revise the NFRD:
  • expand the scope beyond large publicly listed entities;
  • indicate a minimum set of mandatory reporting criteria;
  • require companies to disclose their non-financial information in the annual management report;
  • introduce minimum reporting criteria for forward-looking disclosures;
  • ensure the reliability of reported information.

Accountancy Europe also highlighted how the accountancy profession can support the move towards a sustainable economy through supporting the implementation of measuring and monitoring processes, assist companies in providing better corporate information and provide independent assurance.