Sustainability Reporting in the European Union

Sustainability reporting for a smart, sustainable and inclusive European Union.

Recent Policy Developments

In December 2014, the recently adopted Directive on disclosure of non-financial and diversity information by certain large companies, amending the 2013 Accounting Directive, entered into force. Member states now have two years to transpose it into national laws, and it is expected that the first company reports will be published in 2018 covering financial year 2017-2018.

The Directive introduces measures that will strengthen the transparency and accountability of approximately 6000 companies in the EU. These so-called ‘public interest entities’* with more than 500 employees will be:

• Required to report on environmental, social and employee-related, human rights, anti-corruption and bribery matters;
• Required to describe their business model, outcomes and risks of the policies on the above topics, and the diversity policy applied for management and supervisory bodies;
• Encouraged to 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.

This Directive is part of the wider European Union’s initiative on Corporate Social Responsibility which includes plans for a consistent approach to reporting to support smart, sustainable and inclusive growth in pursuit of the Europe 2020 objectives.

The European Commission launched this proposal for a directive in April 2013 following its announcement in the Single Market Act (2011) and in the Renewed Strategy 2011-2014 for Corporate Social Responsibility (2011).

Furthermore, the European Parliament has also adopted two resolutions in 2013 with regard to implementing the European Commission’s CSR strategy: a Report on Corporate Social Responsibility: promoting society’s interests and a route to sustainable and inclusive recovery; and a Report on Corporate Social Responsibility: accountable, transparent and responsible business behaviour and sustainable growth.

For more details on the Directive please refer to the pager below.

EU Directive on NFR

Linkage Document

GRI and the EU

Events & Activities

High-level event on transparency, reporting and disclosure on non-financial information

On 6 March 2013, GRI organized a high-level breakfast meeting at the European Parliament co-hosted by Members of European Parliament Arlene McCarthy (S&D), Rebecca Taylor (ALDE), and Cecilia Wikström (ALDE).

This event brought together key actors from European institutions, governments, business and civil society organizations, creating an environment for meaningful and constructive engagement. The discussion greatly contributed to the ongoing debate on the implementation of the European Union’s CSR strategy, and more specifically on the issues of transparency and sustainability reporting.

Read more about the outcome of the event.

Dinner meeting with Members of the JURI Committee - European Parliament

Taking place on the 12 June 2013 in Strasbourg, this dinner debate aimed at convening Italian MEPs of the JURI Committee in the Eurpopean Parliament to have an exchange of views about the non-financial information disclosure proposal by the European Commission, as well as sustainability reporting and its benefits for businesses, market, society and action by policy makers and market regulators worldwide.

European Commission’s proposal on disclosure of non-financial information by certain large companies and groups - Status of the dossier and exchange of views with representatives of key interest groups

In light of the current legislative process of the European Commission proposal on non-financial information, this high-level event provided a platform for the key players at the European Parliament debate to exchange views and understand the different positions in the debate.

The event took place on the 5 November 2013 at the European Parliament with the aim of striking a compromise, contributing to the EU co-decision process towards a European approach on non-financial reporting as a means towards improved business performance, investment decisions and sustainable society.

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