Investors need clearer impact information, says SROI Network
The SROI Network, soon to be known as Social Value UK, is calling for a change in legislation to demand more assurance from businesses of their social and environmental impact information.
Its report, How Do Companies Act, outlines the training and accreditation body’s argument for extending statutory audit requirements of Annual Reports. It maintains that there are gaps and limitations in current legislation, chiefly the Companies Act, which prevents investors from understanding social and environmental impact information.
Jeremy Nicholls, ceo of the SROI Network, commented: "We have argued that whilst there is an increase in demand for information on the social and environmental impacts of a company’s activities, the current auditing requirement means that it is difficult for investors to know that this information is complete and accurate."
"We believe that strengthening this legislation will give investors a more accurate idea of where they are investing their money and, if in the investors’ interests, mean that investment will shift to businesses which on balance have less of a social and environmental impact."
You can download the report here.