1.
November 20 | Tweet @CDSBGlobal

2.
November 20 | Tweet @CDSBGlobal
French companies’performance
under the EU NFR Directive
Axelle Blanchard, Policy Manager at CDSB

3.
November 20 | Tweet @CDSBGlobal
French top strengths and weaknesses
Key findings of CDSB’s review of 2019 disclosures under the EU NFRD 3

4.
November 20 | Tweet @CDSBGlobal
Key findings for French companies
Key findings of CDSB’s review of 2019 disclosures under the EU NFRD 4
Despite good level of implementation, disclosures remain lengthy and lack
details around specific risks and impacts to the business
Ensure a clear understanding of material issues to the business for an investor
audience
Adoption of TCFD continues to be slow and integration with NFRD disclosure is
limited
Risk is an important areas for improvement to ensure that disclosure supports
improved decision-making
The interface with national-level disclosure requirements must be considered
carefully to avoid duplicative requirements

5.
November 20 | Tweet @CDSBGlobal
• Only 6 of the French companies reviewed showed evidence of
alignment to the TCFD requirements in their disclosure
• 31% of French companies disclosing business model impacts
(EU 42%)
• None of the French companies fully disclosing their strategic
resilience based on this exercise over short, medium and long-
term (EU 14%)
Key findings of CDSB’s review of 2019 disclosures under the EU NFRD 5
TCFD and risks

6.
November 20 | Tweet @CDSBGlobal
• 13% of the companies applied a double materiality perspective
• 50% of companies only applying an environmental and social
materiality
• Lack of clarity on the materiality assessment
Key findings of CDSB’s review of 2019 disclosures under the EU NFRD 6
Materiality definition and assessment

7.
November 20 | Tweet @CDSBGlobal
• French companies’ disclosures proven to be the longest in Europe
• 25 pages on average (up to 70 pages)
• Duplicative requirements, a French problem?
Key findings of CDSB’s review of 2019 disclosures under the EU NFRD 7
Size and length of disclosures

8.
November 20 | Tweet @CDSBGlobal
• Support the inclusion of the TCFD recommendations into the Directive
• Harmonise and specify disclosure requirements, including at national level, to
avoid lengthy and duplicative requirements
• Support the review of the principal risk requirements of the Directive to ensure
emphasis is placed on risks and impacts ‘to’ the business
Key findings of CDSB’s review of 2019 disclosures under the EU NFRD 8
France: Key policy recommendations

9.
November 20 | Tweet @CDSBGlobal
German companies’performance
under the EU NFR Directive
Michael Zimonyi, Policy and External Affairs
Director at CDSB

10.
November 20 | Tweet @CDSBGlobal
§ 289c HGB Anforderungsschema
10
Kennzahlen als Ergebnisse der Konzepte oder als steuerungsrelevante Leistungsindikatoren im Sinne von DRS 20
Bekämpfung von
Korruption &
Bestechung
ArbeitnehmerbelangeUmweltbelange Sozialbelange Unternehmens-
individuelle Themen
Achtung der
Menschenrechte
sowie
Relevant für das
Verständnis der
Auswirkungen der
Geschäftstätigkeit auf die
nichtfinanziellen Aspekte
Relevant für das
Verständnis des
Geschäftsverlaufs, des
Geschäftsergebnisses,
der Lage
Wer?
Große PIE, Banken und
Versicherungsunternehmen
mit ≥ als 500 AN
Wo?
Nichtfinanzielle Erklärung im
Lagebericht oder als gesonderter
nichtfinanzieller Bericht
Wie?
Frei wählbare Rahmenwerke &
Standards
Gesetzliche Wesentlichkeitsformel
bestimmt den „Mindestumfang“
Sofern kein Konzept verfolgt wird
„Comply or Explain“
Verfolgte Konzepte,
einschl. Due-Diligence-
Prozesse
Hinweise
Jahresabschluss
Ergebnisse aus verfolgten
Konzepten
Wesentliche Risiken
(eigene Geschäftstätigkeit
sowie in Lieferkette und
bezogen auf Produkte)
Bedeutsamste
nichtfinanzielle
Leistungsindikatoren
Key findings of CDSB’s review of 2019 disclosures under the EU NFRD

11.
November 20 | Tweet @CDSBGlobal
Germany top strengths and weaknesses
Strengths
Policies and due diligence
Business Models
Outcomes
Weaknesses
KPIs
TCFD implementation
Principal Risks
Key findings of CDSB’s review of 2019 disclosures under the EU NFRD 11

12.
November 20 | Tweet @CDSBGlobal
• Governance: in line with EU average;
• Strategy: No adequate disclosure on strategic resilience using
scenario analysis (EU average 14%);
• Risk management:
– Below average in assessing physical risk;
– No adequate disclosure time horizons of risks; and
– Better than average at disclosing management.
Key findings of CDSB’s review of 2019 disclosures under the EU NFRD 12
Risks & TCFD implementation

13.
November 20 | Tweet @CDSBGlobal
KPIs (TCFD Metrics & Targets)
Strengths
• Energy KPIs; and
• Financial-related KPIs (DE: 45% vs EU average 32%).
Weaknesses
• 1/5 did not report prior years’ data;
• Scope 1, 2 & 3 emissions values often unclear; and
• Scope 3 reporting below average.
Key findings of CDSB’s review of 2019 disclosures under the EU NFRD 13
All German companies disclosed GHG emissions, in line with EU sample.

14.
November 20 | Tweet @CDSBGlobal
• Clarify national implementation of double materiality;
• Support the inclusion of the TCFD recommendations into the Directive
• Support the review of the principal risk requirements of the Directive to ensure
emphasis is placed on risks and impacts ‘to’ the business
Key findings of CDSB’s review of 2019 disclosures under the EU NFRD 14
Germany: Key policy recommendations

15.
November 20 | Tweet @CDSBGlobal
Polish companies’performance
under the EU NFR Directive
Joanne Houston, EU Policy Officer at
Frank Bold

16.
Alliance for Corporate Transparency
Performance of Polish companies pursuant
to the requirements of the EU Non-Financial
Reporting Directive
Project coordinated by

17.
Content partners
Advisory group
Management partners

18.
18
Research on sustainability disclosures of EU
companies

19.
19
Scope
2019 Research 2020 Research

20.
20
Performance of Polish companies
Today’s presentation is based on:

21.
Country Briefing: Polish Companies’
Performance
Key findings
As highlighted in CDSB’s Country Briefing:
• Strengths
- Above average performance when it comes to the accessibility
and traceability of their non-financial information (96.9%
compared to the European average of 85.9%)
• Weaknesses
- Overall below average level of compliance with NFRD
requirements compared to the rest of the EU
- Key areas for improvement include reporting on policies and
due diligence in mitigating risk, as well as climate-related KPIs
21

22.
Country Briefing: Polish Companies’
Performance
Reporting on policies and related outcomes
5%55% 40%
48%18% 34%
Poland
No information is provided Policy description specifies key issues and objectivesPolicy is described or referenced
17%
17.8%
45.3% 39.2% 5.4%
47.6% 34.2%
Climate change policies
Climate change policy outcomes
29.6%
82.4%
43%
16.2%
27.4%
1.4%
No description Outcomes in terms of meeting policy targetsDescription provided 22

23.
Governance: 6.3% of companies indicated how sustainability is integrated in the Board
and senior management operations and mandate, compared to a European average of
53.8%.
Strategy: No Polish company provided adequate disclosure on strategic resilience using
scenario analysis (EU average 5.9%).
Risk Management: Below average in assessing physical risk. No adequate disclosure
time horizons of risks. Above average in disclosing management actions.
Metrics and Targets: Below par in terms of prevalence and quality of KPI types and less
likely than average to have incorporated KPIs/targets into executive remuneration.
Country Briefing: Polish Companies’
Performance
Implementation of the TCFD Recommendations
23

24.
Policies
• No information  28.8%
• Vague disclosure  50.7%
• Specific information  20.5%
Outcomes of policies:
• No description  50.7%
• Vague description  36.9%
• Detailed description  12.4%
Alliance for Corporate Transparency 2020
Research
Polish companies: Reporting on policies and related
outcomes
24

25.
Governance: 3% report on the sustainability matters addressed by the Board in the
previous year and decisions
Strategy: 4.1% provides adequate disclosure on strategic resilience using scenario
analysis
Risk Management: Only around 20% describe specific; 7% describe clear management
approach for identified risks
Metrics and Targets: 16% of companies have a climate target (vs. 32% average); 2.7%
describe its alignment with Paris Agreement; No company provides details of executive
compensation is affected by their performance against ESG criteria
Alliance for Corporate Transparency 2020
Research
Polish companies: Implementation of TCFD
Recommendations
25

26.
Some conclusions
• Vague disclosures of policies, outcomes and risks, which
requires specification of reporting requirements
• Insufficient reporting of KPIs, including critical targets and
alignment with international objectives
• Poor implementation of TCFD criteria
• Overall, no major improvements over time 26

27.
27Contact us
Joanne Houston
EU Policy Officer
joanne.houston@frankbold.org
+32 28 931 063
Social Media
www.allianceforcorporatetransparency.org
@EUCorpReporting
http://eepurl.com/dJPBjQ
Contact us

28.
November 20 | Tweet @CDSBGlobal
Briefings
https://www.cdsb.net/publications-resources/discussion-papers
28
Environmental and climate-related disclosure under the EU NFRD
• TCFD
• Risk disclosure
• Disclosure in France,
Germany, Poland
Download the briefings:
TCFD disclosure under the EU Non-Financial Reporting Directive

29.
November 20 | Tweet @CDSBGlobal
Enhanced reporting Europe campaign
29
Access regular support from
experts in climate and
environmental mainstream
disclosure.
Access to experts
Improve climate and
environmental disclosure using
CDSB feedback.
Understand the policy context
and improve preparedness for
regulation and application.
Disclosure feedback Policy briefings
Learn from peers and experts
through country and region-
specific workshops.
Obtain resources directly post-
launch and notifications on
upcoming publications.
Resources Internal support
Receive tailored briefings for
reporting teams focused on
sustainability and/or finance
functions.
Workshops
https://www.cdsb.net/what-we-do/enhanced-reporting-europe
Enhanced Reporting Europe

30.
November 20 | Tweet @CDSBGlobal
www.cdsb.net/NFR2020

31.
November 20 | Tweet @CDSBGlobal
Thank you!
With the contribution of the
LIFE Programme of the
European Union.
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