Sustainability | Free Full-Text | Comprehensive Approach to Relevant and Reliable Reporting in Europe: A Dream Impossible?


Company reporting and governance are interlinked: Accounting and reporting innovations created the trendy firm, and with out the trendy firm there isn’t a entity from which to report. Resulting from its raison d’etre, reporting remained finance-centered, to guard monetary capital suppliers. From the 1970’s, the query of the pursuits of ‘stakeholders’ emerged, with makes an attempt of ‘social reporting’, ‘company social duty’, ‘environmental’, and ‘social and environmental’ and at last ‘built-in’ accounting and reporting. These traits are mirrored additionally within the European Union authorized framework, each in regulation of particularly monetary intermediaries and the ‘non-financial’ reporting. This text is predicated on an in depth literature overview, analysis performed within the Sustainable Market Actors for Accountable Commerce (SMART) undertaking, and socio-legal and financial empirical analysis primarily based conceptual evaluation of the influence of those reporting programs and their relationship to monetary accounting and reporting. The results of the analysis is that sustainability is decreased to give attention to institutional traders and different members within the funding provide chain, and local weather change points solely, and new regulatory options are required. Primarily based on the latest developments in EU legislation and in European jurisdictions, doable paths ahead are envisaged to encourage sustainability in reporting and assurance, and thru that, in governance. As an end result a set of regulatory reform proposals are given primarily based on the SMART suggestions.

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