SVI’s True & Fair Project has released a brief research summary examining how the “true and fair” requirement is addressed in four EU jurisdictions: Italy, the Netherlands, France, and Spain.

SVI’s True & Fair Project has published a research paper focused on Article 4 of Directive 2013/34, which requires directors to approve financial statements that both comply with accounting standards and present a true and fair view. This principle is crucial, as financial statements guide decisions by investors, lenders and creditors, and must capture underlying economic reality. With sustainability issues becoming central to business risk and performance, directors are under increasing pressure to consider whether their accounts truly meet this standard. Building on a 2024 UK legal opinion that urged directors to be proactive in fulfilling this duty, the new EU-focused paper extends the analysis across key jurisdictions.

The paper explains the true and fair requirement under the EU Accounting Directive and explores how it is interpreted in Italy, the Netherlands, France and Spain, with input from legal experts in each country. It sets out how courts, regulators and market practice view the requirement, and outlines the implications for boards, auditors and investors when sustainability impacts affect disclosure or recognition. Developed with support from members of the Global Alliance of Impact Lawyers, the research lays the foundation for future guidance. SVI now plans to create practical resources for directors, investors, accountants and lawyers, with further country-specific research expected in 2026 and opportunities for organisations to participate through pilots and case contributions.

We at GAIL are proud to have contributed to this work alongside our GAIL members:
Roberto Randazzo – Legance
Bas Visée & Anouk Oosterom – Rutgers & Posch
Alissa Mickels Pelatan – AMP Avocats