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EU Directive On Non-Financial Reporting Will Bite In 2017

Date: 30 May 2014

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7 pages

Executive Summary

In April 2014, the European Parliament finalized the new European Union (EU) directive on non-financial reporting. The directive applies to more than 6,000 large firms in the EU, specifies the scope of non-financial reporting required but leaves the door open to the use of existing sustainability, human rights and employee reporting frameworks. For financial reports issued after the middle of 2016, firms have two options to comply with the directive: 1) disclose the requested information; 2) explain why they have not disclosed the information. Verdantix estimates that the Boards of 4,000 firms in Europe that do not currently disclose non-financial information will need to discuss their intended approach. Heads of sustainability also need to track national laws that implement the directive because some countries may require assurance of the non-financial disclosures by an independent audit or verification provider.

TABLE OF CONTENTS

EU DIRECTIVE ON NON-FINANCIAL REPORTING WILL BITE IN 2017

EU Aims To Make Annual Non-Financial Statements A Standard Practice
Compliance With The Directive Is Mandatory But Disclosures Are Voluntary
The EU Directive Should Convince Firms To Enhance Sustainability Management Information

ORGANIZATIONS MENTIONED

BT, Deloitte, DNV GL, E.ON, European Commission, European Parliament, European Union, France Agency for Environmental and Energy Management (ADEME), Global Reporting Initiative, KPMG, Svenska Kullagerfabriken AB (SKF), United Nations (UN), World Resources Institute (WRI)