Eurosif calls for mandatory disclosureMay 2009
One of Europe’s most influential SRI bodies has called on European state and regulatory institutions to insist on mandatory disclosure of CSR data by large companies.
The European Sustainable Investment Forum (Eurosif) has made the demand in a new position paper directed mainly at the European Commission, in which it says the time is right for more regulation to increase transparency on CSR issues.
The paper also says institutional investors should be subject to ‘a mandatory statement of investment principles’ in which trustees would state the extent (if at all) to which social and environmental xonsiderations are taken into account ‘in the selection, retention and realization of investments’.
Eurosif’s call comes amid signs of a renewed focus on the issue of mandatory CSR reporting in the wake of concerns about the ‘soft touch’ regulatory regimes of the past 20 years. Last month the Global Reporting Initiative also called on governments to consider introducing regulations on mandatory reporting.
Matt Christensen, Eurosif’s executive director, said: ‘The current global financial crisis is a wake-up call for European policymakers to address long-simmering issues around transparency in capital markets. This is an historic opportunity to adopt policies that encourage longer-term performance and discourage short-term bubbles.’
Gunter Verheugen, who holds the CSR brief as the EC, recently rejected any notion that the Commission would be examining the issue of CSR regulation (EP10, issue 10, p12).
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