12 months on – Sustainable Governance proposals in the EU & USA

It is the anniversary of the European Commission’s initiative to drive forward a Sustainable Corporate Governance Directive. 

Following the 2006 Directive which required listed firms to include a governance statement in their annual reports, the newer initiative is about environmentally sustainable decisions and human rights in business.

The expectations are upon larger companies, or higher risk sectors. 

For now, Europe has not prescribed that directors’ duties will be enhanced to scaffold the above changes, although that was mooted beforehand.  The EU is trying hard, however, to echo UN Sustainable development goals and climate accords.

Beneficiaries of longer-term strategic thinking are shareholders and customers, and potentially also the environment.

In the U.S., there is a similar movement seeking to make company directors legally accountable for risk-managing their sustainability. 

From trends abroad, we can conclude “short termism” in Board thinking, is dated.

It isn’t easy to balance different stakeholders needs and interests. Make the job considerably easier with the right software:-

Board Originator delivers sustainable thinking – across its various power tools –

• Prompts you to write and review Vision and Values
• Records who your Stakeholders are
• Automates corporate Objectives, fully customisable
• Automates your horizon scan of the exogenous environment
• Automates your Board Meeting Agenda with more strategic items

Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on Corporate Sustainability Due Diligence and amending Directive (EU) 2019/1937 – COM/2022/71 final

Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Directive 2013/34/EU, Directive 2004/109/EC, Directive 2006/43/EC and Regulation (EU) No 537/2014, as regards corporate sustainability reporting – COM/2021/189 final

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