Showing papers on "Directive published in 2018"

Harmonising non-financial reporting regulation in Europe: Practical forces and projections for future research

Abstract: Motivated by the new European Union Directive 2014/95 on non-financial and diversity information, this paper aims to develop a future research agenda to conduct pragmatic, theory-oriented research into the Directive and corporate sustainability reporting.,Drawing upon the relational dynamics between states, firms and society in regulating non-financial reporting (NFR), this essay frames and analyses the Directive and its grand theories, as unproven theories, by discussing its practical concerns and reviewing the academic literature.,The Directive is an act of policy to legitimise NFR that encompasses two grand theories: improve the comparability of information and enhance corporate accountability. From a pluralist perspective, companies can rest assure that their compliance with the Directive will be perceived as socially desirable, proper and appropriate. However, some of the forces involved in translating the Directive into actionable policies operate contra to the Directive’s goals and, instead, act as barriers to its grand theories. In addressing these barriers, a research agenda is proposed that both traces backward to re-examine the foundational theories of the past and looks forward to explore alternative possibilities for achieving these goals.,This paper provides researchers with a practical-driven and theory-oriented agenda for future research in light of the rising academic interest in the Directive.,The barriers to the Directive’s grand theories help policymakers and practitioners to understand the practical concerns about the implementation of the Directive and other mandatory NFR policies.,This paper enriches the emerging debate on the Directive and highlights future possibilities for fruitful empirical research by developing a research agenda.

Ensuring More Sustainable Reporting in Europe Using Non-Financial Disclosure—De Facto and De Jure Evidence

Abstract: Non-financial disclosure has become increasingly popular, as it can satisfy the information needs of a growing range of stakeholders. Because traditional financial reports cannot provide comprehensive accountability, several frameworks and guidelines for facilitating non-financial information disclosure have been developed. Recently, the European Union issued Directive 2014/95/EU (EU Directive) and subsequent guidelines (EU Guidelines 2017/C215/01 [EUG]) to mandate European entities of public interest to convey non-financial information to improve such organizations’ accountability toward their stakeholders. This paper studies the European stage of non-financial reporting from a regulatory and practical point of view. To this end, the first research objective is to analyze the elements that the EUG have in common with the IIRF and the GRI 4 guidelines. Second, the paper proposes a first analysis to assess the compliance to the EUG by performing a content analysis on a sample of annual reports and integrated reports (IR) drafted by the 50 biggest European companies. The results highlight that the content elements required by the Directive exceed the requirements of the two frameworks and that there is already a high level of compliance by European big companies with the EUG. More specifically, particular attention is devoted to Social, Employee and Environmental Matters. Accordingly, the companies demonstrated a common awareness of the necessity to provide an exhaustive amount of social and environmental disclosure in order to maintain legitimacy. Also the disclosure on Principal Risks and Their Management is widespread to meet investors’ and stakeholders’ requirements in recent years with respect to the general level of risk disclosure provided by companies.

Empirical Analysis of Non-Financial Reporting by Spanish Companies

Abstract: Spain is one of the European countries that is the most strongly committed to the presentation of non-financial information. In 2017, Spain adapted its legislation to Directive 2014/95/EU through Royal Decree-Law 18/2017, which required Public Interest Entities (PIEs) to provide information in accordance with the requirements of the European Union (EU) Directive, with respect to financial years from 1 January 2017. Our research is focused on Spanish IBEX-351 listed companies and seeks to identify current trends in non-financial reporting. To our knowledge, the present paper is the first study to examine the impact made in Spain by the legislative changes. Our aim is to analyse the publication of non-financial information by Spanish listed companies whose first reports in this regard were made from early 2018. Specifically, we consider the impact of this information disclosure, determining whether the companies in question restrict themselves to meeting regulatory requirements or whether they go further and voluntarily supply additional information. Our findings show that the level of regulatory compliance produced is associated with the business sector in which the company operates. We also show that the highest rates of disclosure of non-financial information correspond to companies that provide this information in the sustainability report.

Ex-Ante Impact Assessment of Sustainability Information–The Directive 2014/95

Abstract: Directive 2014/95, in force since 2017, is the first European step that requires undertakings to provide mandatory non-financial information. The regulation concerns sustainability information, such as environmental, social, and employee information, human rights, and anti-corruption and bribery matters, and the disclosure of diversity policies for board members. According to the theoretical framework of Integrated Assessment (IA), the study aims to examine the expected impact of the Directive within the analysis of empirical evidence before the mandatory approach. This allows, on the regulatory side, evaluation of the quality of the regulation, therefore, whether the law achieves its policy objectives (i.e., if it fills the gap in the sustainability disclosure) and, on the firms’ side, to identify where companies have to invest to meet the legal requirements. The oil and gas sector is chosen as a sample for the study, because it is one of the most advanced sectors in sustainability disclosure, and if the regulation could impact on this sector, it would be the same for less-informed ones. The findings reveal a fair level of completeness of non-financial information, however, there are some areas that have to be improved to achieve the requirements of the Directive. The results also show the presence of overlap between financial and sustainability reports. In conclusion, the quality of regulation is good because it will also increase sustainability disclosure in an advanced sector, such as oil and gas, even if there is an open point on the location of information; companies in this sector will have to invest more in environmental and employee information in future years to comply with the Directive.

Opinion: Flood-risk reduction: Structural measures and diverse strategies.

Abstract: Floods continue to hit many countries, both less developed and industrialized, bringing human suffering and immense economic damage (see floodobservatory.colorado.edu/). Hurricane Florence and Typhoon Mangkhut were just the most recent reminders of the disruption that flooding can bring. Hence, striving to improve the flood-risk governance system has broad relevance. Yet, the reduction of flood risk, understood globally as a combination of hazard, exposure, and vulnerability, is a rather distant goal (Fig. 1). Fig. 1. In January 2018, the Seine flooded in Paris. When it comes to flood policies around the world, both social and engineering factors must be further explored and scrutinized—as should notions of justice as they relate to flooding impacts and responses. Image courtesy of Shutterstock.com/Ekaterina Pokrovsky. Several weaknesses of flood-risk management in the United States, recognized in a recent PNAS Opinion (1), generally apply to many European countries as well, despite all the political, economic, and social differences between the United States and Europe. From our European perspective, this panoply of approaches suggests that both social and engineering factors must be further explored and scrutinized across the globe—as should notions of justice related to flooding impacts and responses. The European Union (EU) has dedicated legislation, called Directive 2007/60/EC, on the assessment and management of flood risks (2). This “Floods Directive” aims to reduce and manage the risks that floods pose to human health, economic activity, the environment, and cultural heritage. The Directive requires all 28 EU Member States to identify areas at risk of flooding, to map the flood extent as well as assets and humans at risk in these areas, and to take adequate measures to reduce this flood risk. The Directive takes a procedural approach and allows EU Member States policy discretion in designing flood-risk management. The Directive, as well as national obligations related to it, … [↵][1]1To whom correspondence should be addressed. Email: kundzewicz{at}yahoo.com. [1]: #xref-corresp-1-1

The Transition of EU Water Policy Towards the Water Framework Directive's Integrated River Basin Management Paradigm.

Abstract: Introduced in 2000 to reform and rationalise water policy and management across the European Union (EU) Member States (MS), the Water Framework Directive (WFD), the EU’s flagship legislation on water protection, is widely acknowledged as the embodiment and vessel for the application of the Integrated River Basin Management (IRBM) paradigm. Its ecological objectives, perhaps even more challenging than the prospect of statutory catchment planning itself, were for all EU waters to achieve ‘good status’ by 2015 (except where exemptions applied) and the prevention of any further deterioration. In support of the upcoming WFD review in 2019, the paper reviews the transition of EU policies that led to the adoption of the WFD, to identify the reasons why the Directive was introduced and what it is trying to deliver, and to place progress with its implementation into context. It further investigates reasons that might have limited the effectiveness of the Directive and contributed to the limited delivery and delays in water quality improvements. Findings reveal that different interpretations on the Directive’s objectives and exemptions left unresolved since its negotiation, ambiguity and compromises observed by its Common Implementation Strategy and lack of real support for the policy shift required have all been barriers to the harmonised transposition of the IRBM paradigm, the key to delivering good ecological status. The 2019 WFD review offers a unique opportunity to realign the implementation of the Directive to its initial aspirations and goals.

Transposition of the Antitrust Damages Directive Into Spanish Law

Abstract: This paper analyses the legal measures adopted to implement Directive 2014/104/EU into Spanish law. After briefly looking at the context of private enforcement of competition law in Spain, it examines the process followed for the transposition and the issues discussed before the adoption of the Transposition Decree in May 2017. Overall, it can be affirmed that the new rules comply with the mandates of the Directive, only in a few matters there seems that there will be doubts concerning the interpretation of the new provisions. Some of the doubts may be rooted in the Directive itself (relative responsibility of co-infringers, umbrella claimants, harm to suppliers), and others in the lack of express rules in the Transposition Decree on some matters (causation, fault requirement, interests calculation), moreover it is uncertain how the new procedural tools will play out in practice as they imply a revolutionary change in our procedural rules.

The Exception for Text and Data Mining (TDM) in the Proposed Directive on Copyright in the Digital Single Market - Legal Aspects - In-Depth Analysis for the Directorate-General for Internal Policies of the Union, Policy Department Citizens Rights and Constitutional Affairs, European Parliament

Abstract: This research paper reproduces the study commissioned to CEIPI by the European Parliament’s Policy Department for Citizens’ Rights and Constitutional Affairs at the request of the Committee on Legal Affairs (JURI-Committee). It provides an analysis of the European Commission’s Proposal to introduce in Article 3 a mandatory exception to copyright allowing to carrying out text and data mining of protected works, assesses its positive and negative impacts and provides some suggestions for possible improvements. Advantages of introducing an “open clause” in EU copyright law on top of an enumerated list of limitations and exceptions to address some of the related problems are also reviewed.

Mandatory Quotas for Women on Boards of Directors in the European Union : Harmful to or Good for Company Performance?

Abstract: Impact assessments are an important component of a better regulation programme—an initiative of the European Commission launched to improve the quality and transparency of the EU (European Union) law-making process. In the current article, I take a closer look at the Impact Assessment (IA) issued by the European Commission together with a Directive proposing a 40% obligatory female representation on the boards of directors in European public companies. In the IA, the Commission defined an improvement of corporate governance as one of the objectives to be achieved by the Directive. The Commission claimed that the more gender-diverse a corporate board is, the better it will perform. However, it is questionable whether mandatory quotas indeed have such a positive impact on corporate governance. Here I argue that, to properly assess the impact of a given policy, it is crucial to examine how the policy measure itself interferes with corporate performance. I present both field and laboratory studies investigating the influence of mandatory quotas on company performance, individual attitudes and group cooperation. Next, I discuss implications of these findings for the evaluation of the IA quality as well as the legality of the Directive. The current analysis of the IA shows that despite recent improvements there are still considerable flaws in conducting impact assessments of the EU legal initiatives.

Neglecting the Proactive Aspect of Human Rights Due Diligence? A Critical Appraisal of the EU’s Non-Financial Reporting Directive as a Pillar One Avenue for Promoting Pillar Two Action

Abstract: Firms’ human rights due diligence (HRDD) and communication on their human rights impacts are not only elements in the Corporate Responsibility to Respect human rights (Pillar Two), but also to be promoted by States as part of their State Duty to Protect (Pillar One) through regulatory strategies aiming at shaping business conduct. Analysing the EU’s 2014 Non-Financial Reporting Directive as an example of governmental regulation for promoting responsible business conduct, the article discusses conditions for HRDD and reporting as a communication process to stimulate organizational change in accordance with the UN Guiding Principles to avoid harm, including through affected-stakeholder engagement. Applying socio-legal regulatory theory along with organizational and accounting literature, the article finds that the Directive’s predominant focus on ex-post measures appears to be a neglected opportunity to induce ex-ante organizational learning and changed business conduct to prevent adverse human rights impact. It offers recommendations for regulators and stakeholders for stronger regulation.

An analysis of trade secrets: directive 943/2016 on the protection of undisclosed know-how and business information (trade secrets) against their unlawful acquisition, use and disclosure

Abstract: The evolution of trade secret law: from international agreements to the proposal of a directive in the European Union. Directive 943/2016 on the protection of undisclosed know-how and business information (trade secrets) against their unlawful acquisition, use and disclosure. Trade secret law and its impact on other EU sectorial legislation.

Proposal for a regulation of the European parliament and of the council on the health technology assessment and amending directive 2011/24/EU: stakeholders' qualitative analysis

Abstract: Health technology assessment: fundamental concepts. EU cooperation on health technology assessment. Proposal for a regulation of the European parliament and of the council on health technology assessment and amending directive 2011/21/EU. The stakeholders' view on the proposal in the pre and post adoption: a qualitative analysis.

The criminal law protection of the financial interests of the European Union

Abstract: The criminal law protection of the financial interests of the EU from the birth of the European communities to the proposal for a PFI directive The directive of the European Parliament and the council on the fight against fraud to the Union's financial interests by means of criminal law The role of the Court of Justice in the protection of the financial interests of the Union

Identifying Gaps between the Legislative Tools of Soil Protection in the EU Member States for a Common European Soil Protection Legislation

Abstract: To ensure an adequate level of protection in the European Union (EU), the European Commission (EC) adopted the Soil Thematic Strategy in 2006, including a proposal for a Soil Framework Directive (the Directive). However, a minority of Member States (United Kingdom, Germany, France, Austria, and The Netherlands) could not agree on the text of the proposed Directive. Consequently, the EC decided to withdraw the proposal in 2014. In the more than 10 years that have passed since the initial proposal, a great number of new evidences on soil degradation and its negative consequences, have proved the necessity of a common European soil protection Directive. This study is aimed at specifying the possible obstacles, differences, and gaps in legislature and administration in the countries that formed the blocking minority, which resulted in the refusal of the Directive. The individual legislations of the opposing countries on the matter, were summarized and compared with the goals set by the Directive, in three highlighted aspects: (1) soil-dependent threats, (2) contamination, and (3) sealing. We designed a simple schematic evaluation system to show the basic levels of differences and similarities. We found that the legislative regulations concerning soil-dependent degradation and contamination issues in the above countries were generally well defined, complementary, and thorough. A common European legislation can be based on harmonised approaches between them, focusing on technical implementations. In the aspect of sealing we found recommendations, principles, and good practices rather than binding regulations in the scrutinised countries. Soil sealing is an issue where the proposed Directive’s measures, could have exceeded those of the Member States.

Promotion and Harmonization of Antitrust Damages Claims by Directive EU/2014/104?

Abstract: Directive EU/2014/104 is the latest legal instrument that crystalizes the evolution of EU competition law enforcement. This paper assesses critically the features of the Directive and the challenges it poses for its implementation by Member States. The Directive codifies the case law of the EUCJ and it encroaches upon the autonomy of Member States in setting the institutions, remedies and procedures available for victims’ of antitrust infringements. Although the Directive provides a fragmented and incomplete set of rules that only partially harmonizes antitrust damages claims in the EU, and it’s slanted towards follow-on cartel damages claims, it has publicised the availability of damages claims, creating momentum that will transform how competition law is enforced in the future.

In search of materiality for nonfinancial information—reporting requirements of the Directive 2014/95/EU

Abstract: Materiality of disclosures is one of the fundamental principles of the nonfinancial reporting regime introduced by the Directive 2014/95/EU (“NFI Directive”). However, despite its close link to the principle of materiality for financial reporting, specific issues arise in the context of these new reporting requirements—leading to a conception that is different also from existing definitions in the field of similar reporting practices. Furthermore, there are different types of “materialities” to be found within the Directive itself. So far, this topic has not been addressed systematically in literature, leaving many questions open and causing confusion by both preparers and readers on nonfinancial reports. Consequently, this paper identifies and links the various types of materiality by analysing, contextualizing and interpreting the relevant sections of the Directive 2014/95/EU and other reporting frameworks. It is shown that despite the expectations of many, with regards to materiality, the reporting requirements of the Directive 2014/95/EU are closer to integrated reporting than it is to sustainability reporting.

Awareness, approval and completion of advance directives in older adults in Switzerland.

Abstract: Advance directives enable people to describe their preferences for medical treatment (living will) and/or to appoint a healthcare proxy who may decide on their behalf should they lose decision-making capacity. Advance directives are potentially important in determining the course of end-of-life care, as deaths are frequently preceded by end-of-life treatment decisions, which often require someone to make decisions on the patient's behalf. Switzerland introduced legally binding advance directives through its new child and adult protection law of 2013. But there is still no comprehensive evidence on older persons' awareness, attitudes and behaviours with regard to advance directives in Switzerland. Our study aimed to assess levels of awareness, approval and completion of advance directives, as well as their respective associations with sociodemographic characteristics in the Swiss population aged 55 and older. Our study was cross-sectional and used data from the Survey of Health, Ageing and Retirement in Europe (SHARE), which included a special module on end-of-life issues in wave 6 (2015) in Switzerland (n = 2085). Two years after the introduction of advance directives in Switzerland, 78.7% of adults aged 55 years and older had heard of them prior to the survey and 24% reported that they had completed one. Awareness of advance directives was higher in the German-speaking part of Switzerland (91%) than in the Italian- (57.1%) and French-speaking (43.3%) regions (p <0.001). Advance directive completion also differed significantly between the German- (28.7%), French- (10.3%) and Italian-speaking (17.9%) regions of Switzerland (p <0.001). Overall, 76.7% of Swiss adults aged 55 and older generally approved of advance directives, i.e., they either reported having already completed one or were planning to do so in the future. Of those who had not yet completed an advance directive, 32.9% believed that it was still "too early" for them to do so and 30.1% believed that they would not need one. Levels of awareness, approval and completion of advance directives also varied significantly by sex, age, education level and household composition. Our results show some potential for improvement in levels of advance directive awareness and, especially, completion among older adults, notably in the French- and Italian-speaking Switzerland. In view of the generally high levels of approval of advance directives, our findings point to important barriers to their completion by older persons that should be addressed by policy makers in order to ensure an effective translation of individual intentions to complete an advance directive sometime in the future into concrete and timely actions toward this end.

Decentralising competences in multi-level systems: insights from the regulation of genetically modified organisms

Abstract: The adoption of Directive 2015/412 marks a turning point in policy-making in the European Union since for the first time the legal competence for a regulatory area has been passed from the EU to the member states. The member states can now request their territory to be excluded from authorisation for genetically modified organisms (GMOs) for commercial cultivation. In the first step of the analysis, the article shows that higher levels of public support for GMOs decrease the likelihood of member states filing an opt-out request, while controlling for other potential explanatory factors. In the second step, it concentrates on the controversy between the federal and the state level in Germany regarding the transposition of the new directive. It is found that the directive offers some degree of strategic opportunity for pro-GMO political parties to pursue a regulatory approach that would otherwise be impeded by negative public opinion.

The Transposition of the Non-Financial Reporting Directive in the UK, France and Italy

Abstract: The aim of this study is to investigate how EU Member States used their discretion in transposing EU Directive n. 2014/95/EU. The Directive provided the opportunity to achieve similar levels of companies’ transparency on social and environmental matters, as well as increasing trust and encouraging more sustainable corporate behaviors. The comparison of the transposition laws in France, Italy, and the UK indicates that significant differences shape company obligations at the country level.

The Recommendation on Measures to Safeguard Fundamental Rights and the Open Internet in the Framework of the EU Copyright Reform

Abstract: Article 13 of the Proposed EU Directive on Copyright in the Digital Single Market and the accompanying Recital 38 are amongst the most controversial parts of the European Commission’s copyright reform package. Several Members States (Belgium, the Czech Republic, Finland, Hungary, Ireland, the Netherlands and Germany) have submitted questions seeking clarification on aspects that are essential to the guarantee of fundamental rights in the EU and to the future of the Internet as an open communication medium. The following analysis discusses these questions in the light of the jurisprudence of the Court of Justice of the European Union. It offers guidelines and background information for the improvement of the proposed new legislation.

Fit for purpose? : the Facilitation Directive and the criminalisation of humanitarian assistance to irregular migrants : 2018 update

Abstract:  la Risoluzione del Parlamento europeo del 12.2.2019 sull'attuazione della Carta dei diritti fondamentali dell’Unione europea nel quadro istituzionale dell’UE;  la Risoluzione del Parlamento europeo del 12.2.2019 sull'applicazione delle disposizioni del trattato relative alla cittadinanza dell’Unione;  lo studio del Parlamento europeo del 21.12.2018 “Fit for purpose? The Facilitation Directive and the criminalisation of humanitarian assistance to irregular migrants: 2018 update”.

Uniform Interpretation of Article 4(2) of UCT Directive in the Context of Consumer Credit Agreements: Is it possible?

Abstract: So much has been said about the exclusion of contractual terms from the unfairness test embedded in Article 4(2) of the UCT Directive by both the CJEU as well as the legal doctrine. Nonetheless, numerous national courts of different MS struggle with the interpretation and consequently proper application of their domestic laws implementing this provision. This particularly concerns the correct interpretation of this rule within the complex surrounding of consumer credit agreements, where an understanding of the notions deriving from the exclusion is conditioned by the proper knowledge of terms of financial and mathematical nature, such as variable interest rate, annual percentage rate of charge, currency clause, various methods of calculation etc. National courts all over the Union are repeatedly occupied by questions regarding which of these contractual terms are encompassed by the notions of the ‘definition of the main subject matter of the contract’ or ‘adequacy of the price and remuneration’, and particularly whether these contractual terms are transparent to an average consumer. This article investigates the approach the CJEU has taken regarding these questions and examines whether its answers are ‘transparent’ enough for MS’ courts.

NIS directive: The case of Greece

Abstract: The directive on security of network and information systems (NIS directive) is one of the latest steps that the EU has taken in order to strengthen security of its systems. The directive describes specific steps that each member state should follow. Greece that has recently published its cyber security strategy is moving towards the implementation of the NIS directive. The road ahead is long and a cooperation in both technical and strategic level is needed. This article describes the roadmap of the implementation of the NIS directive in Greece, the milestones, the problems and possible solutions.