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The majority of Germany’s largest listed companies are planning to
include more information on their social and environmental performance
in their annual reports as a result of a new disclosure regulation
introduced in the country.
A survey commissioned by Deloitte and the German Federal Ministry of the Environment suggests that more than three-quarters of the DAX-30 will integrate non-financial key performance indicators (KPI) into their next annual financial reviews, as the German Commercial Code now requires.
A questionnaire sent to those DAX-30 companies to which the regulation will apply this year was completed by 16 businesses, of which 14 say they intend to publish non-financial KPIs in the next annual report. The remaining two said they would not do so because they have only limited social and environmental impacts.
The regulation says annual financial reports should, from this year, contain a description of the principal risks that the company faces, and that this analysis should include, ‘where appropriate’, non-financial KPIs relevant to the business, including information on issues such as the environment and employees.
Half the respondents said they would feature the KPIs in a separate ‘sustainability’ section of the annual report and one in three plan to provide a link to a standalone non-financial report.
A recent survey of the 40 largest listed French companies found that a similar regulation had improved the quantity and quality of non-financial reporting in France (EP8, issue 1, p6).
A survey commissioned by Deloitte and the German Federal Ministry of the Environment suggests that more than three-quarters of the DAX-30 will integrate non-financial key performance indicators (KPI) into their next annual financial reviews, as the German Commercial Code now requires.
A questionnaire sent to those DAX-30 companies to which the regulation will apply this year was completed by 16 businesses, of which 14 say they intend to publish non-financial KPIs in the next annual report. The remaining two said they would not do so because they have only limited social and environmental impacts.
The regulation says annual financial reports should, from this year, contain a description of the principal risks that the company faces, and that this analysis should include, ‘where appropriate’, non-financial KPIs relevant to the business, including information on issues such as the environment and employees.
Half the respondents said they would feature the KPIs in a separate ‘sustainability’ section of the annual report and one in three plan to provide a link to a standalone non-financial report.
A recent survey of the 40 largest listed French companies found that a similar regulation had improved the quantity and quality of non-financial reporting in France (EP8, issue 1, p6).
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