The Government consulted widely in formulating the narrative reporting provisions in the Companies Act 2006 and they were the subject of extensive parliamentary debate during the passage of the Act.
All companies, other than small companies, are required to produce a Business Review. The Companies Act 2006 introduces a new requirement for quoted companies—to the extent necessary for an understanding of the business—to report on environmental matters, the company's employees, social and community issues, and relationships with key suppliers. The new provisions in the Act will enhance the transparency of that reporting and make it easier for shareholders to hold the directors to account in all aspects, including social and environmental issues, of the company's performance.
No further consultation is planned on these requirements but, as I said during the passage of the Act through Parliament, we will review the Business Reviews once they have been in operation for two years.