EU Directive on publication of non-Financial information
The new European directive n°2014/95/EU of 22 October 2014 has amended certain provisions of the ‘Accountant’ directive n°2013/34/EU.
Objective: Obtain comparable and quality financial information, to enhance the transparency of non-financial information on issues regarding social, environmental, employee, respect for human rights and the fight against corruption.
Non-financial reporting requirement (art. 19A)
For whom ? Listed companies, banks and insurance companies with more than 500 employees. A company that is a subsidiary is exempt from the requirement if its information is included in the consolidated management report or separate report of another company.
When ? It will apply to fiscal years beginning 1 January 2017, after its transposition into French law no later than 6 December 2016.
Where? Non-financial information (environmental, social and societal) have to be included in the management report created annually. They may also be published in a separate report under certain conditions.
a) a brief description of the business model of the Group;
b) a description of the policies applied by the group in relation to questions:
- Environmental matters ;
- Social and employee aspects ;
- Respect for human rights ;
- Anticorruption and bribery issues ;
- Diversity in their board of directors.
including procedures for reasonable due diligence implemented
c) the results of environmental, social and societal policies;
d) the main risks related to these issues in connection with the activities of the Group and the way in which the group manages these risks;
e) key indicators of performance of a non-economic nature relating to the activities in question
This new European directive and its transposition into French law have many impacts on companies established in France, whether they are French or international. Each of them have to provide the required non-financial information either by its own management report or through its parent’s management report.
Primexis, a leading independent Accounting and Consulting firm, can assist you in collecting, presenting, and reporting this information in full compliance following the implementation of the European directive ‘Non-Financial Information’ in the European Union and in France.
qualified Chartered Accountant
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