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Non-Financial Reporting

The plenary of the European Parliament adopted on 15 April 2014 the directive on disclosure of non-financial and diversity information by certain large companies and groups. The directive will enter into force once adopted by the Council and published in the EU Official Journal. Companies concerned will need to disclose information on policies, risks and outcomes as regards environmental matters, social and employee-related aspects, respect for human rights, anti-corruption and bribery issues, and diversity in their board of directors. The new rules will only apply to some large companies with more than 500 employees. In particular, large public-interest entities with more than 500 employees will be required to disclose certain non-financial information in their management report. This includes listed companies as well as some unlisted companies, such as banks, insurance companies, and other companies that are so designated by Member States because of their activities, size or number of employees. The scope includes approx. 6 000 large companies and groups across the EU.

The Directive leaves significant flexibility for companies to disclose relevant information in the way that they consider most useful, or in a separate report. Companies may use international, European or national guidelines which they consider appropriate (for instance, the UN Global Compact, ISO 26000, or the German Sustainability Code).

The Directive provides for further work by the Commission to develop guidelines in order to facilitate the disclosure of non-financial information by companies, taking into account current best practice, international developments and related EU initiatives.

The European Commission adopted its proposal on 16 April 2013. This measure was announced in the Single Market Act in April 2011, and in the Communication “A renewed strategy 2011–2014 for Corporate Social Responsibility pdf” issued in October 2011. The European Parliament adopted two resolutions on 6 February 2013, (“Corporate Social Responsibility: accountable, transparent and responsible business behaviour and sustainable growth” and “Corporate Social Responsibility: promoting society’s interests and a route to sustainable and inclusive recovery”), acknowledging the importance of company transparency in these fields.

Related documents:

15.04.2014
The plenary of the European Parliament adopted on 15 April 2014 the directive on disclosure on non-financial and diversity information by certain large companies and groups.
16.04.2013
Proposal for a Directive amending Council Directives 78/660/EEC and 83/349/EEC as regards disclosure of non-financial and diversity information by certain large companies and groups
01/2011
Public consultation on disclosure of non-financial information by companies