You may be aware that the EU Non-Financial Reporting Directive (NFRD) is to be transposed into Member States’ law by 6 December 2016. This means that if your company has an average of 500 employees, and is a Public Interest Entity (PIE), you will need to report on certain environmental and social data in your annual management statements for the 2017 financial year.
The directive has two parts:
- A non-financial statement which covers as a minimum: environmental, social and employee matters, respect for human rights, anti-corruption and bribery matters.
- A diversity disclosure, as part of the corporate governance statement.
There isn’t much time left to prepare for these changes – you may need to collect new data, and will be required to publish a report to discuss your impacts. Additionally, you will have to think about your sustainability impacts for your whole business in key business elements, such as your business model, KPIs and risks.