European corporate disclosures on climate change and other sustainability issues are generally poor, a study Monday showed, as regional policymakers mull toughening up the rules.
The European Union's Non-Financial Reporting Directive came into force in 2018 and requires companies to disclose how they manage a range of social and environmental challenges, but stops short of specifying what companies should report. It is now assessing the rule's effectiveness and what may need to change.
Making sure the directive is fit for purpose is a crucial component of the EU's €1 trillion ($1.1 trillion) European Green Deal, which aims to cut carbon emissions to net zero by 2050.