EU: Carbon reporting disclosures by firms are full of holes  

Commission calls for firmer directive on climate-related reports, as investors are unable to compare firms' environmental impact

Revealing which companies are C02 transgressors is a key step in diverting investors — and therefore firms — towards low-emission technology, but the information that many companies file is inadequate. 

The EU is calling for a significant expansion of climate reporting requirements after finding that businesses and banks aren’t providing the information needed to guide capital toward a carbon neutral future.

The European Commission said the Non-Financial Reporting Directive should be expanded to include unlisted companies and proposed dropping a 500-employee threshold. Small and medium-sized companies listed on stock markets should also be subject to the requirement, the commission said.