EU Wants Tougher Climate Disclosure Rule as Firms Lag Behind

European authorities are 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, according to a statement. Listed small and medium-sized companies should also be subject to the requirement, the commission said.