INTRODUCTION

Directive 2014/95/EU of the European Parliament and of the Council on disclosure of non-financial and diversity information by certain large undertakings and groups (‘the Directive’) entered into force on 6 December 2014. This Directive amends Directive 2013/34/EU on the annual financial statements, consolidated statements and related reports of certain types of undertakings. Companies concerned will start applying the Directive as of 2018, on information relating to the 2017 financial year.

Greater transparency is expected to make companies more resilient and perform better, both in financial and non-financial terms. Over time this will lead to more robust growth and employment and increased trust among stakeholders, including investors and consumers. Transparent business management is also consistent with longer-term investment.

The disclosure requirements for non-financial information apply to certain large companies with more than 500 employees, as the cost of obliging small and medium-sized enterprises to apply them could outweigh the benefits. This approach keeps administrative burden to a minimum. Companies are required to disclose relevant, useful information that is necessary to understand their development, performance, position and the impact of their activity, rather than an exhaustive, detailed report. Furthermore, disclosures may be provided at group level, rather than by each individual affiliate within a group. The Directive also gives companies significant flexibility to disclose relevant information in the way that they consider most useful, including in a separate report. Companies may rely on international, EU-based or national frameworks.

Appropriate non-financial disclosure is an essential element to enable sustainable finance. The European Commission decided on 28 October 2016 to establish a High Level Expert Group on sustainable finance. This builds on the Commission’s goal to develop an overarching and comprehensive EU strategy on sustainable finance as part of the Capital Markets Union. The group is expected to submit to the Commission a set of policy recommendations by end of 2017.

See the Guidelines online and in different languages here.

Guidelines on non-financial reporting - EU, 2017 DOWNLOAD

post

page

attachment

revision

nav_menu_item

custom_css

customize_changeset

oembed_cache

user_request

wp_block

wp_template

wp_template_part

wp_global_styles

wp_navigation

wp_font_family

wp_font_face

acf-taxonomy

acf-post-type

acf-field-group

acf-field

ai1ec_event

exactmetrics_note

DataJam Pasos Libres Online 2021
News & AnalysisGuidancePublicationsEvents

Pasos Libres, the Global Initiative against Transnational Organized Crime, the Responsible and Ethical Private Sector Coalition against Trafficking (RESPECT), the International Labour Organization (ILO) and partners invi...Read More

Guide to Implementation of the AAA by Business
Guidance

This Guide is designed to assist businesses participating in the Bali Process Government and Business Forum with practical examples to implement the AAA Recommendations (2018). This Guide is not designed to be prescriptive or exhaustive, but rather ...Read More

Assessing Labor Risk for Workers Migrating from the Philippines to Europe
GuidancePublications

Millions of people from the Philippines have migrated abroad for employment, seeking a better life and improved economic status for themselves and their families. Today, over 10 million Filipinos are estimated to live and work internationally, with ...Read More

State of Commercial Sexual Exploitation of Children in Maharashtra
Guidance

India is a global hotspot for trafficking of women and minors for commercial sexual exploitation (CSE), and Maharashtra, as its financial and commercial capital, is one of the largest destinations for CSE in the country. However, reliably estimating...Read More

TAGS: Asia