GRI (Global Reporting Initiative) and CSR Europe have released a publication on Directive 2014/95/EU and the future of non-financial reporting in Europe.
Directive 2014/95/EU, or the EU Non-Financial Reporting Directive (NFRD) as it’s more commonly known, is now in force. With member states required to have legislation in place as of December 2016, it is expected the first company reports will be published in 2018 covering financial year 17-18.
The Directive introduces measures that will strengthen the transparency and accountability of approximately 6000 companies in the EU. It’s part of the wider EU initiative on Corporate Social Responsibility (CSR), which includes plans for a consistent approach to reporting to support smart, sustainable and inclusive growth in pursuit of the Europe 2020 objectives.
Companies captured under the Directive are required to:
- Report on environmental, social and employee-related, human rights, anti-corruption and bribery matters;
- Describe their business model, outcomes and risks of the policies on the above topics, and the diversity policy applied for management and supervisory bodies;
- Rely on recognized frameworks such as GRI’s Sustainability Reporting Guidelines, the United Nations Global Compact (UNGC), the UN Guiding Principles on Business and Human Rights, OECD Guidelines, International Organization for Standardization (ISO) 26000 and the International Labour Organization (ILO) Tripartite Declaration.
Member State Implementation of Directive 2014/95/EU publication
GRI and CSR Europe, supported by Accountancy Europe, have developed a publication which outlines the principal elements of the 28 Member States’ laws, and provides insight on the direction non-financial reporting is headed in Europe.
This publication maps the national laws implementing the Directive in all the 28 EU Member States as well as two additional countries from the wider European Economic Area (EEA): Iceland and Norway. The publication is a useful resource for companies as well as policymakers and other stakeholders to gain an overview of the current state of non-financial reporting policies implementing the Directive across Europe. It aims to help with a comparison of the national-level transpositions, and to support companies to prepare for its practical implementation for reporting cycles in 2018.
Greenstone and the EU NFRD
Here at Greenstone, we have mapped the EU NFRD within our Enterprise solution to the GRI Standards; the latest version of GRI’s non-financial reporting guidelines. Due to the detailed and prescriptive nature of the GRI Standards, clients can use this mapping to easily identify the metrics and KPIs required for compliance with the new EU regulations, collect data from across the organisation and consolidate information into external reporting templates.
There are number of other GRI-mapped frameworks available in the Greenstone Enterprise solution including ISO 26000, OECD Guidelines for Multinational Enterprises, the Sustainable Development Goals, UN Global Compact, UN Guiding Principles on Business and Human Rights and the UN Women’s Empowerment Principles.