/ Aviva Investors takes a strong position regarding corporate responsibility
Investor News - 03/02/2013
Aviva Investors takes a strong position regarding corporate responsibility
Aviva published its position on the European Commission’s plan to propose further measures to include non-financial reporting for companies. The company pushes for a legislative framework that encourages companies worth more than €2bn to publish material business sustainability information.
Aviva Investors has set out seven “tests” it will be using to measure the effectiveness of the forthcoming narrative reporting update to the European Commission’s Accounting Directive:
1. Board focus: encourages boards to debate the issues and think about the consequences and either comply by disclosing or explain why they have not.
2. Business relevance: focuses on issues that are relevant to the cash flows of the business and potentially material.
3. Standards: builds on and refers to existing guidance, including but not limited to the UN Global Compact, the Universal Declaration of Human Rights, The Global Reporting Initiative, the ILO Core Labour Standards, the OECD Guidelines for Multinational Enterprises, the ISO standards and the International Integrated Reporting Council.
4. Performance data: focuses on the disclosure of corporate performance, with quantified key performance indicators.
5. Integrated: requires the Key Performance Indicators to be integrated throughout the report and accounts, including strategy, risk, audit and remuneration.
6. Market based oversight and accountability: oversight by the market at the AGM perhaps via a vote. It is not overseen by regulators.
7. Scope: applies to all listed companies with a market capitalization of at least €2bn.
Aviva’s position is fully in line with Vigeo’s own principles of defining corporate responsibility; and with the normative and universal approach defining Vigeo’s methodology which is based on UN, ILO norms and the OECD Guidelines.