The European Parliament passed a law on April 15th compelling about 6,000 EU companies to publicize information about environmental compliance, human rights, corruption and bribery. EU member states are allotted two years to implement the reform in their national legislation.
The law applies to listed companies, credit institutions, and insurance firms. Only companies with more than 500 employees are covered. Once implemented, companies must include the disclosures in their annual reports, and put forth information about their supply chains.
Member states can grant exemptions from the requirement.
Investor groups were quick to speak out in favor of the new rule as a means of providing them with information necessary to evaluate company sustainability.
For more information, check out the 2014 EU release here.