The enactment of the European Non-Financial-Reporting-Directive (2014/95/EU) and the new (proposed) Corporate-Sustainability-Reporting-Directive as its successor introduced aspects of corporate social responsibility to the world of financial reporting for almost all listed corporations in the common market. This established a path dependency between the traditional financial and the (new) non-financial reporting regime. As the consequence, the actual non-financial reporting regime does not provide a unique scope of application and does not distinguish between business entities with and without an impact on corporate social responsibility. Nevertheless, the actual content of financial reporting and non-financial reporting is fundamentally different since financial information is a number-based information instrument and sustainability information is a text-based information instrument. Moreover, financial information and non-financial information do not require the same corporate governance procedure for drafting and examining. Finally, it is doubtful that the liability regime of financial disclosure can be used as some kind of blueprint for a civil liability regime for non-financial disclosure. Since the existing framework for civil liability in financial disclosure cannot be used for cases of incorrect non-financial disclosure, it is necessary to develop an independent regime of civil liability for incorrect non-financial disclosure. The existing path dependency between financial and non-financial disclosure prevents this necessary step.

Companies’ sustainable and socially responsible footprint, especially multi-national corporations, is increasingly scrutinised by policy-makers, stakeholders and the media. However, regulatory policy to promote socially responsible and sustainable behaviour at companies remains at an emerging state as the minimally intrusive regulatory instrument of disclosure regulation seems to be the preferred policy. Disclosure regulation merely compels information to be released so that next steps can be taken by interested recipients, whether they be the market or stakeholders. This Chapter explores disclosure regulation introduced at the EU level transposed in the UK, as well as the UK’s own initiatives such as the modern slavery statement that large businesses have to publicly disclose in relation to their supply chains. It is argued that disclosure regulation does not necessarily foster deep self-reflection and fundamental changes in corporate behaviour, as corporations’ responses to compliance with disclosure regulation vary significantly.