Europe wants to force companies to be more transparent about its extra-financial data

While France faces an unprecedented situation of no majority and an obligation of dialog between parties, the European authorities managed to find a decisive compromise on extra-financial reporting.

On Tuesday night, the Commission, Parliament and Council agreed on a framework for ESG (Environment, Social, Governance) data to be made public. What is new is that this constraint will not only affect businesses in the 27 Member States, but also foreign groups wishing to operate in the old continent.

Specifically, this will apply to companies with more than 250 employees with a turnover of more than EUR 40 million. A total of 50,000 should be affected. One to two thousand SMEs should also be subject to it, but with lighter declarations.

What is new is that foreign groups with an annual turnover of more than EUR 150 million in the EU will have to comply with the same rules.

Among the data to be published are respect for human rights, environmental impact… Some of its data will be subject to audit and certification, according to Le Figaro.

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