Consultation response: Strengthening of the quality of corporate reporting and its enforcement
ClientEarth responds to the European Commission’s consultation on strengthening the quality of corporate reporting and its enforcement, focused on corporate sustainability (non-financial) reporting.
ClientEarth’s consultation response explains that current failures in sustainability reporting threaten the success EU Green Deal, and demonstrates that:
- Rates of compliance with the non-financial reporting directive (NFRD) are currently extremely poor.
- Despite this, national competent authorities (NCAs) have not been actively enforcing reporting obligations.
- Unless accompanied by robust enforcement, the corprorate sustainability reporting directive (CSRD) will not be able to achieve the transformation to sustainability reporting required.
- The corporate sustainability reporting compliance and enforcement gaps must be addressed under the existing legal regime, and with urgency.