CSR Europe, together with CSR Forum Japan, has run a research with companies across Europe on their reporting practices.
A survey was completed by 69 companies from 31 different countries, representing 33 different sectors. The objective was to identify how European companies are currently disclosing non-financial information.
The research highlighted 3 main challenges companies face on non-financial disclosure:
- Linking the business activities with non-financial information;
- Coordinate and promote understanding with other divisions;
- Organise and integrate different information.
Yet, practices on non-financial reporting and disclosure evolve across Europe with an increasing awareness around the subject. However, among the companies who do NOT pursue disclosure to this date, there is a relatively vast group currently considering sustainability reporting. Results also display a growing trend in the management involvement.
Some additional relevant facts emerged by the research:
- More companies prioritise topics according to stakeholders’ expectations and business relevance. In fact, 61% of the responding organisations use materiality assessment as a tool to define sustainability priorities;
- The Sustainable Development Goals (SDGs) are integrated in the reports of some of the responding companies. 54% share information on how their current activities and strategies link to the SDGs.
- Requesting non-financial information to suppliers is not yet an established practice among European companies. Nevertheless, 49% already request non-financial information from primary and/or secondary suppliers. This might be a correlation with stakeholders increasing interests in the subject. The survey showed that 53% of the companies do experience some impact from stakeholder’s engagement on non-financial information disclosure.
‘As reporting practice continues to evolve, companies should consider it as an important tool to embrace stakeholders’ expectations, and an opportunity to integrate sustainability into their business model and stay ahead of regulations and gain competitive advantage’ says Rosanna Tufo, project Manager at CSR Europe.
Read on for the key findings of the survey on identify how European companies are currently disclosing non-financial information.
For more information on how to evolve your reporting practices, visit here or contact Rosanna Tufo (firstname.lastname@example.org).
See more survey results