Alliance for Corporate Transparency launches research report on sustainability reporting
Feb 17, 2020
At a launch event on February 17, 2020 in Brussels, the Alliance for Corporate Transparency presented a report that analysed the information that companies disclosed on their environmental and societal risks and impacts following the requirements introduced by the EU Non-Financial Reporting Directive. The launch embedded the research into discussions around "The State of Corporate Sustainability Reporting in the EU".
The study assessed how 1000 European companies disclose sustainability and other non-financial information. Key findings of the study were:
- Less than 22% of the companies surveyed report climate-related key performance indicators in summarised statements, the rest of them publish them scattered around in different locations or not at all;
- only 20%-25% of companies describe risks specifically even though identifying them as relevant to the company in the first place;
- the TCFD criteria are not applied;
- outcomes are only reported in 4% of cases despite that fact that risks are identified and in some cases activities described;
- supply chain transparency is low with supply chain transparency in the apparel sector being the highest but still not exceeding 14%;
- only 6% of companies provide economic figures on sustainability activities;
- disclosures are immaterial.
There is not a major difference between different European regions, with the exception that companies from former Eastern Europe lag behind.
Generally, disclosures are not specific enough to enable understanding of a company’s position and future developments. Reports focus on presenting general policies and commitments, but not concrete targets, outcomes of policies with respect to these targets, and specific information on risks and impacts.
The following additional information is available on the Alliance for Corporate Transparency website:
