Pension funds have welcomed moves announced by the European Commission today to enhance business transparency on social and environmental matters. The new rules will change the annual reporting requirements of any EU company with more than 500 employees.
David Paterson, Head of Corporate Governance, National Association of Pension Funds, said:
“These changes will help investors like pension funds get a much clearer picture about the long-term sustainability of a business. Too often at present, investors can study a company’s financials but they cannot understand and compare vital non-financial parameters that gauge social and environmental issues.
“Long-term and non-financial risks - including environmental concerns, social factors and governance – can be connected with a company’s ‘licence to operate’ and will have a financial impact down the line, so they should be reported meaningfully to shareholders.
“We believe that the disclosure of material non-financial factors is in all companies’ interests. Reporting is an important catalyst for change that contributes to the long-term health of a business and consequently our capital markets.”
Notes to editors:
1. Further details can be seen at: http://europa.eu/rapid/press-release_IP-13-330_en.htm
2. The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,300 pension schemes with some 16 million members and assets of around £900 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector.
Paul Platt, Head of Media and PR, NAPF, 020 7601 1717 or 07917 506 683, [email protected]
Christian Zarro, Press Officer, NAPF, 020 7601 1718 or 07825 171 446, [email protected]