The London Stock Exchange has responded to the DTI regarding their widened consultation on the repeal of the OFR and narrative reporting requirements. In our response,
informed by the feedback we have received from listed companies,
we support efforts to increase shareholder engagement
. However, we
raise
d
concerns that
mandatory
forward-looking statements on social, community, employee and environmental matters represent
an
additional
regulatory
burden for Main Market companies.
In our response, we reinforce our support for the 'principles' based approach to corporate governance in the
UK
,
which lets the market decide on appropriate levels of compliance
. We stress that
whilst best practice in CSR should be encouraged, the mandatory reporting on
social, community, employee and environmental matters
outlined in the OFR adds to the
regulatory
burden for listed companies
.