The Grenelle II Act In France: A Milestone Towards Integrated Reporting
- by Evelyn Neumayr
By Elena Avesani, Principal Product Strategy Manager, Oracle
In July of 2010, France took a significant step towards mandating integrated sustainability and financial reporting for all large companies with a new law called Grenelle II. Article 225 of Grenelle II requires that many listed companies on the French stock exchanges incorporate information on the social and environmental consequences of their activities into their annual reports, as well as their societal commitments for sustainable development. The decree that implements Article 225 of Grenelle II was passed in April 2012.
Grenelle II is the strongest governmental mandate yet in support of sustainability reporting. The law defines the phase-in process, with large listed companies expected to comply in their 2012 reports and smaller companies expected to comply with their 2014 annual reports. This extra-financial information will have to be embedded in the annual management report, approved by the Board of Directors, verified by a third-party body and given to the annual general meeting. The subjects that must be reported on are grouped into Environmental, Social, and Governance categories.
Oracle solutions can help organizations integrate financial and sustainability reporting and provide a more accurate and auditable approach to collecting, consolidating, and reporting such environmental, social, and economic metrics. Through Oracle Environmental Accounting and Reporting and Oracle Hyperion Financial Management Sustainability Starter Kit organizations can collect environmental, social and governance data and collect and consolidate corporate sustainability reporting data from multiple systems and business units.
For more information about these solutions please contact [email protected].
