Academics have argued that businesses should be compelled by law to issue environmental and social reports, but governments have so far pushed for ‘voluntary’ arrangements. The commission appears in tune with the UK which has urged more disclosure but falls short of forcing companies into action.
The EC recommendations allow exemptions for SMEs while targetting banks, insurers and financial institutions.
The widening scope of environmental legislation can have important financial consequences for companies, says Brussels.
For more on environmental reporting see www.accountancyage.com/Business/1121822.