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Non-Financial Reporting

Financial and non-financial reporting provides shareholders and other stakeholders with a meaningful, comprehensive view of the position and performance of companies.

Large public-interest entities (listed companies, banks, insurance undertakings and other companies that are so designated by Member States) with more than 500 employees should disclose in their management report relevant and useful information on their policies, main risks and outcomes relating to at least

  • environmental matters,
  • social and employee aspects,
  • respect for human rights,
  • anticorruption and bribery issues, and
  • diversity in their board of directors.

There is significant flexibility for companies to disclose relevant information (including reporting in a separate report), as well as they may rely on international, European or national guidelines (e.g. the UN Global Compact, the OECD Guidelines for Multinational Enterprises, ISO 26000, etc.).

What is going on?

06.12.2016

The Directive on disclosure of non-financial and diversity information (2014/95/EU) entered into force in December 2014. This ambitious legislation requires around 6,000 large companies listed on EU markets, or operating in the banking and insurance sectors, to disclose relevant environmental and social information in the management report, with the first reports to be published in 2018 (on financial year 2017). Member States had to finalise the transposition into national legislation by 6 December 2016.

The Directive requires the Commission to prepare non-binding guidelines on the methodology for reporting non-financial information by 6 December 2016. The Commission is making its best efforts to make the guidelines useful for companies.

The Commission services conducted a public consultation in the spring 2016. The consultation process also included 16 bilateral expert interviews, and two workshops with more than 80 stakeholders held in September 2016.

Taking account of recent international developments, including at G20 and FSB level, the planning of this initiative has been adjusted. In particular, this will enable us to consider as far as possible the work of the industry-led Task Force on climate-related financial disclosures established by the Financial Stability Board (FSB). The non-binding guidelines will be published as soon as possible in the spring 2017.

15.01.2016
The European Commission has launched a public consultation on the non-binding guidelines on methodology for reporting non-financial information following article 2 of Directive 2014/95/EU on disclosure of non-financial and diversity information by certain large undertakings and groups. The purpose of this public consultation is to collect views from stakeholders. The consultation is part of the Commission work related to preparing non-binding guidelines on methodology for reporting non-financial information by December 2016.
2015-2016

EU Member States should transpose the rules on non-financial reporting into national legislation by 06.12.2016. In this context, the European Commission is organizing transposition workshops to assist national authorities. The European Commission prepares non-binding guidelines on the methodology for reporting non-financial information by end-2016.

22.10.2014
An amendment to the Accounting Directive was adopted by the European Parliament and the Council as regards disclosure of non-financial and diversity information by certain large undertakings and groups:
29.09.2014
The Council of the European Union adopted the draft amendment to the Accounting Directive.
15.04.2014
The plenary of the European Parliament adopted the draft amendment to the Accounting Directive.