GBP Monitor August: Almost One Third of Companies Demand Fewer Disclosure Requirements

The German Business Panel asked and companies answered: In July almost one third of companies demanded fewer disclosure requirements. Amongst them are mainly small companies that have access to fewer resources and qualified personnel. Larger companies often even benefit from more transparency. They use the data disclosed by competitors as a source of information for themselves and therefore assess the requirements as much more positive.

Not only large corporations but also small and medium sized businesses need to report detailed company data in Germany. Disclosure requirements are important. This way, the public can get informed about the economic situation and performance capability of a company. This serves to protect business partners and ensures proper functioning of the market. At the same time, disclosure of business data entails costs for the companies. The new Corporate Sustainability Reporting Directive (CSRD) includes further disclosure requirements as of 2024 – and therefore higher costs. The German Business Panel now took this as an opportunity to survey how companies evaluate the current disclosure requirements in Germany. Because “successful regulation needs to find the right balance and should not demand too much of companies,” explains project leader Jannis Bischof.

Press release