Directive on Non Financial Reporting and Diversity Information
•Download as PPTX, PDF•
0 likes•126 views
The document discusses the requirements for non-financial reporting and diversity information under the EU Directive. Large companies with over 500 employees are required to report on environmental and social issues in their management reports. They must disclose their business model, policies, risks, and KPIs relating to matters like the environment, social issues, respect for human rights, anti-corruption and diversity. Investors are increasingly interested in this non-financial information to evaluate risks, management quality and align investments with their values. Stock exchanges are also implementing sustainability disclosure rules globally.
Recommended
More Related Content
Similar to Directive on Non Financial Reporting and Diversity Information
Similar to Directive on Non Financial Reporting and Diversity Information (20)
Recently uploaded
Recently uploaded (20)
Directive on Non Financial Reporting and Diversity Information
- 2. SUSTAINABILITY AND CORPORATE RESPONSIBILITY: MEASUREMENT AND REPORTING ▸Directive on Non Financial Reporting and Diversity Information ▸The purpose is to provide decision useful environmental information to the markets via the mainstream corporate reports ▸Mega Trends in Reporting ▸How Investors see it ▸ Stock Exchange view
- 3. THE NFR DIRECTIVE - REQUIREMENTS IN PRACTICE ▸Who ? ▸“large undertakings or parent undertakings of a group exceeding on their balance sheet…an average number of 500 employees during the financial year” ▸Where ? ▸Management report ▸Consolidated management report for corporate groups; or ▸Separate report corresponding to same financial year - not recommended SUSTAINABILITY AND CORPORATE RESPONSIBILITY: MEASUREMENT AND REPORTING
- 4. SUSTAINABILITY AND CORPORATE RESPONSIBILITY: MEASUREMENT AND REPORTING REQUIREMENTS IN PRACTICE ▸What ▸For financial year starting on 1st January 2017 ▸What ▸Business model ▸policies pursued by the group, inc due diligence processes implemented ▸The outcome of those policies ▸the principal risks linked to the groups operations..which are likely to cause adverse impacts..and how the group manages these risks ▸Non Financial KPI’s
- 5. SUSTAINABILITY AND CORPORATE RESPONSIBILITY: MEASUREMENT AND REPORTING REQUIREMENTS IN PRACTICE ▸Where the group does not pursue policies in relation to one or more of those matters, the consolidated non-financial statement shall provide a clear explanation for not doing so… ▸Comply or Explain….
- 6. SUSTAINABILITY AND CORPORATE RESPONSIBILITY: MEASUREMENT AND REPORTING MEGA TRENDS IN REPORTING ▸Public reporting improves impact and reputation of the business ▸It provides a vehicle for greater transparency, accountability and builds Trust ▸Environmental concerns ▸Influence of a networked world ▸Expectation of transparency driving disclosure
- 7. SUSTAINABILITY AND CORPORATE RESPONSIBILITY: MEASUREMENT AND REPORTING HOW INVESTORS SEE IT ▸To inform risk and return potential ▸To evaluate management quality ▸To engage with companies ▸To develop customised investment portfolio’s ( Fossil Fuel Divestment) ▸Assess Asset Managers
- 8. SUSTAINABILITY AND CORPORATE RESPONSIBILITY: MEASUREMENT AND REPORTING STOCK EXCHANGE DISCLOSURE RULES ▸Stock exchanges are globally implementing sustainability initiatives ▸Stock exchanges in France, Denmark, Holland, South Africa and others now require reporting on Non Financial dimensions - its coming ! ▸EU Regulations currently being transposed into law