Mandatory performance indicators ruled out
The government is resisting Commons pressure to require mandatory performance indicators in companies' annual reports.
Industry and the regions minister Jacqui Smith firmly ruled out a compulsory list and said she was ‘not convinced that setting out a list that directors may be tempted to run down and tick is the most appropriate way to encourage the engagement that this development is all about’.
Speaking during Commons exchanges on Thursday last week, she said quoted companies will be required to provide a narrative report setting out business objectives, strategy and risks and uncertainties.
Carshalton and Wallington Lib Dem MP Tom Brake called for mandatory performance indicators covering environmental and social performances and impact, and urged these should facilitate comparisons between companies.