Is Europe at a Turning Point for Corporate Reporting? EU Directive proposal targets 18000 enterprises on non-financial information
Hosted by CSR Europe and Burson-Marsteller, 28TH MAY 2013, Residence Palace, Brussels
EXECUTIVE SUMMARY Content
The event gathered 160 stakeholders from EU, governments, business, social partners and civil society to discuss the risks and opportunities of the European Commission’s proposal for a Directive on non-financial reporting. At the heart of the debate, participants discussed the challenge of reporting as a means to improve management, performance and trust.
Executive Summary Panel I The Legislative Framework Panel II The Voice of Stakeholders Panel III Is Europe Ready? List of Participants
Draft Directive On 16 16April April 2013, 2013, thethe Commission Commission published published its proposal its proposal for a Council for a and Council and Parliament Directive on non-financial reporting to to be be jointly jointly adopted adopted into into EU EUlaw lawin in spring 2014. 2014. The Theproposal proposalrequires requires18000 18000large large European European companies companies to to report report on on social, environmental, human human rights, rights,anti-corruption anti-corruptionand andbribery briberyissues issuesasaswell wellasas onon diversity (the latter for listed companies only). On expected expected timing, timing, the theDirective Directivewould wouldbe betransposed transposed byby EUEU Member Member States States in in 2016 and companies might be required to publish their first reports in 2017. The proposal is based on a “comply or explain approach” and offers flexibility to enterprises to define which which CSR CSR issues issues are arematerial materialto tothem. them.For Forfurther furtherinformation information please see the full text and other documents on the European Commission’s legislative proposal for non-financial and diversity information.
Opening Session David Earnshaw- CEO, Burson Marsteller Stefan Crets- Executive Director, CSR Europe
Panel I The EU Context Latest developments and future steps The Legislative Framework
Didier Millerot-
The European Parliament will start discussions in the Committee of Legal Affairs (JURI) in June 2013 and aims for a committee vote in November 2013 with a view to negotiate with the Council in early 2014. The European Parliament and the Council of the EU are aiming to adopt the law in spring 2014. The legislative proposal comes at a time when companies have to disclose non-financial information differently according to various and scattered national or sub-national schemes, and when initiatives from international coalitions and countries such as China, Brazil, India, South Africa and the United States are taking a leading role to champion non-financial performance and information disclosure by companies: at home and internationally.
The proposal will be an opportunity for companies to improve their reputation, build their confidence and reassure investors looking for reliable information.
The role of the directive is not to impose strict rules on companies but to make sure best practices become the rule.
D. Millerot
R. Baldassarre
V. Kjaer
R. Howitt
Head of Unit, Accounting and Financial Reporting, DG MARKT, European Commission
Raffaele Baldassarre- MEP, Vice Chair of Committee on Legal Affairs of the European Parliament Full speech
Richard HowittMEP, Member of the European Parliament Subcommittee of Human Rights and Substitute of Committee of Employment and Social Affairs
Viktor Kjaer- Deputy General Director, Danish Government
Panel II The Voice of Stakeholders Main risks, opportunities and challenges Jerome Chaplier-
The majority of the panellists agreed that the proposal is an opportunity to boost transparency and a good starting point to drive social and environmental values and European competitiveness forward. Most of the panelists also considered this proposal to be in line with a “smart mix approach” on CSR, making reporting mandatory while giving companies the choice about which CSR policies and actions can have most impact on their business and society. BUSINESSEUROPE stressed that by making non-financial disclosure compulsory at the EU level companies would be discouraged to share potentially sensitive information with the competition. They also emphasized the risk of potentially making CSR a box-ticking exercise.
Coordinator, European Coalition for corporate Justice (ECCJ)
Patrick ItschertDeputy General Secretary of the European Trade Union Confederation (ETUC)
Michel DoucinAmbassador for Bioethics and CSR, French Ministry of Foreign and European Affairs
Michel BandeSenior Vice President Sustainable Development, Solvay
Jesper LindhardtDirector Triple Bottom Line Strategy and Performance Management, Novo Nordisk
Maxime CeruttiSocial Affairs Director, BUSINESSEUROPE Viktor Kjaer- Deputy General Director, Danish Government
Session II
Q&A’s
Session III
Q&As
Panel III How ready is Europe to build capacity of 18,000+ companies to have effective integrated performance and non-financial disclosure?
This session focused on the practicalities of adopting and putting non-financial reporting into practice. Many companies are already disclosing and integrating non-financial information into their current corporate reporting and this is seen to many as an investment and not a cost, giving them a competitive advantage.
Signature MoU
If the end goal of the EU proposal is to enhance resilience in Europe, it is critical for the EU and governments, together with expert organisations, to equip companies and investors with the necessary capabilities. This concern about the capacity-building has been highlighted by CSR Europe, GRI, WBCSD and IIRC in a joint letter to the Presidents of the EU Institutions and the Council Presidencies.
Stefan Crets, Executive Director , CSR Europe and Ernst Ligteringen, CEO, Global Reporting Initiative
Ernst Ligteringen- CEO, Global Reporting Initiative (GRI) Jessica Fries- Director, IIRC Board and Executive Chair, International Integrated Reporting Council (IIRC) Dr. Rodney Irwin- Managing Director Financial Capital, World Business Council for Sustainable Development (WBCSD) Stefan Crets- Executive Director, CSR Europe Access Stefan Crets Presentation here
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CSR Europe connects companies to share best practice on CSR and shape the business and political agenda on sustainability and competitiveness. CSR Europe’s Enterprise 2020 Initiative, fosters collaboration, innovative practical action and shapes the business contribution to the European Union’s Europe 2020 strategy for smart, sustainable and inclusive growth. CSR Europe (www.csreurope.org) is the leading European business ne tw or k f or C o rp or a te S oc i al Responsibility. Representing over 5000 companies, it is a platform for supporting companies from different indus trial sec tors to pos itivel y contribute to society. Contacts:
Christine Neumann- Project Manager Membership & Stakeholder Relations, CSR Europe cn@csreurope.org +32 (0)2 541 16 25
Venetia Spencer- Deputy-Chair EMEA Practice, Corporate Responsibility, Burson-Marsteller venetia.spencer@bm.com +32 (0)2 743 66 57