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Title New Directions in the European Union's Regulatory Framework for Corporate Reporting, Due Diligence and Accountability: The Challenge of Complexity
ID_Doc 64108
Authors Villiers, C
Title New Directions in the European Union's Regulatory Framework for Corporate Reporting, Due Diligence and Accountability: The Challenge of Complexity
Year 2022
Published European Journal Of Risk Regulation, 13, 4
DOI 10.1017/err.2022.25
Abstract Climate change and the pursuit of sustainability and sustainable business might be regarded as among the world's "wicked problems", especially as they are multi-dimensional problems. Achieving corporate accountability in this context is also difficult when corporate structures are complex as they operate globally and through supply chains. At the European level, under the Green Deal, the Sustainable Finance Initiative and the Sustainable Corporate Governance Initiative include new reporting requirements to amend and expand the scope and application of the 2014 Non-Financial Reporting Directive, alongside changes to directors' duties to ensure they take account of stakeholders' needs and environmental and human rights due diligence requirements. This paper will argue that these legislative and regulatory efforts are to be welcomed, but the complexity of the regulation threatens to undermine its potential impact. It may therefore be necessary to reduce some of the complexity of the regulatory arrangements. However, some complexity may increase resilience and adaptability for responding to the risks involved in the uncertainty and unpredictability of climate change and in dealing with complex corporate structures. The answer is to provide robust regulation that will prompt the corporate behaviours required to avoid the catastrophic trajectory we currently face.
Author Keywords complexity; corporate governance; due diligence; reporting; sustainability
Index Keywords Index Keywords
Document Type Other
Open Access Open Access
Source Emerging Sources Citation Index (ESCI)
EID WOS:000853243900001
WoS Category Law
Research Area Government & Law
PDF https://www.cambridge.org/core/services/aop-cambridge-core/content/view/E3A624F7A75409E77706BA8504E2F549/S1867299X22000253a.pdf/div-class-title-new-directions-in-the-european-union-s-regulatory-framework-for-corporate-reporting-due-diligence-and-accountability-the-challenge-of-complexity-div.pdf
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