German NCSD calls for European framework on ESG reporting

The German Council for Sustainable Development (RNE) has endorsed a recent EU Commission proposal on non-financial disclosure. The European Commission has proposed an amendment to existing accounting legislation in order to improve the transparency of companies with more than 500 employees on social and environmental matters. They will need to disclose information on policies, risks and results as regards environmental matters, social and employee-related aspects, respect for human rights, anti-corruption and bribery issues, and diversity on the boards of directors.

The RNE unanimously approved the German Sustainability Code (GSC) in October 2011 and recommends it as a voluntary standard. The German Federal Government is in support of this endeavour and requests Federal institutions to check whether the Code is applicable and whether they comply. The EU proposal will allow companies to disclose relevant information in the way that they consider most useful, whether this is the UN Global Compact, ISO 26000 or the GSC, for example.

The EU directive on non-financial disclosure is available here.

For more information on the GSC, click here.