On March 8, 2018, the Commission published an action plan on financing sustainable growth ("Action Plan"). The Action Plan builds on the recommendations set out in the Final Report published by the HLEG on January 31, 2018.
Regarding corporate governance, the Action Plan proposes to:
- Publish, by Q2 2019, the conclusions of the fitness check on public reporting by companies launched by the Commission on February 8, 2018.
- Revise, by Q2 2019, the guidelines on climate-related non-financial information (in line with the Financial Stability Board's Task Force on Climate-related Financial Disclosure), as well as utilize a new classification system for climate-related metrics.
- Request that the European Financial Reporting Advisory Group (EFRAG), where appropriate, assess the potential impact of new or revised IFRS standards on sustainable investments.
- By Q3 2018, establish a European Corporate Reporting Lab as part of EFRAG to promote innovation and develop the best practices in corporate reporting, including environmental accounting.
- Promote corporate governance that is more conducive to sustainable investments, by Q2 2019, by carrying out analytical and consultative work with relevant stakeholders. This will assess: (i) the possible need to require corporate boards to develop and disclose a sustainability strategy, including appropriate due diligence throughout the supply chain, and measurable sustainability targets; and (ii) the possible need to clarify the rules according to which directors are expected to act in the company's long-term interest.
- Collect evidence of undue short-term pressure from the capital markets on corporations and consider, if necessary, further steps based on this by Q1 2019.
The Action Plan states that the Commission will report on its implementation in 2019.
The full text of the Commission's Action Plan is available here:
The Commission's press release is available here:
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