Advocacy for Credible Non-Financial Reporting
Posted on February 23, 2016 by Alicia Trepat Pont | News
In 2014, an amendment to the Accounting Directive was adopted by the European Parliament and the Council regarding the disclosure of non-financial and diversity information by certain groups: organisations with more than 500 employees, companies on the stock market and organisations of public interest.
EU Member States should transpose the rules on non-financial reporting into national legislation by 06.12.2016. The European Commission prepares non-binding guidelines on the methodology for reporting non-financial information by the end of 2016.
In this context, one of the most probable scenarios is that large corporations will lobby to moderate the requirements of the transposition of the Directive to the national legal framework. This means that companies will most likely keep reporting on charitable activities, electricity and water use in the headquarters and other non-core business related indicators, as it is usual in most of the Corporate Social Responsibility (CSR) reporting.
Examples of relevant indicators to society and stakeholders would be: use of tax havens, wage differences, relationships to political parties, raw material and production indicators, etc.
Tags: Directive, EU, European Union, Global Hub for the Common Good, Non-financial reporting, platform, project, relevant indicators