Disclosure of non-financial and diversity information by large companies and groups

Directive 2014/95/EU on disclosure of non-financial and diversity information

It requires certain large companies to disclose relevant non-financial information to provide investors and other stakeholders with a more complete picture of their development, performance and position and of the impact of their activity.

The directive applies to certain large companies and groups with more than 500 employees.


Such companies are required to give a review of their business model, policies, outcomes, principal risks and key performance indicators, including on:

environmental matters;
social and employee aspects;
respect for human rights;
anti-corruption and bribery issues.

If companies do not have a policy on one of these areas, the non-financial statement should explain why not. Companies also have to report about their policy on the diversity of the board of directors.


Companies should disclose this information in their annual report, although some EU countries have chosen to allow companies to disclose this information in a separate report if they want to. In preparing their statements, companies may use national, European or international guidelines such as the UN Global Compact.

The European Commission produced non-binding guidelines on how to report non-financial information in 2017. In 2019 it will produce additional guidelines on how to report information about the climate.

Subsidiary companies

A subsidiary company is not required to produce a statement if the information is included in the report of its parent company (i.e. the company that controls the management and operation of the subsidiary company).

Application & Background

The directive has applied since 5 December 2014. It had to become law in the EU countries by 6 December 2016. Companies had to report in accordance with the directive for the first time in 2018, covering financial year 2017.

Non-financial reporting (European Commission)
Improving corporate governance: Europe’s largest companies will have to be more transparent about how they operate — Press release (European Commission)


Directive 2014/95/EU of the European Parliament and of the Council of 22 October 2014 amending Directive 2013/34/EU as regards disclosure of non-financial and diversity information by certain large undertakings and groups (OJ L 330, 15.11.2014, pp. 1-9)


Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC (OJ L 182, 29.6.2013, pp. 19-76)

The successive amendments to Directive 2013/34/EU have been incorporated into the original text. This consolidated version is of documentary value only.


Important Notice! This website is provided for informational purposes only! It is a fundamental condition of the use of this website that no liability is accepted for any loss or damage caused by reason of any error, omission, or misstatement in its contents. 

Draft Articles; The articles on this website are in draft form and are subject to further review for typographical errors and, in some cases, updating and correction. It is intended to include references to the sources of materials and acknowledgements in the final version. The content of articles with [EU] in the title and some of the articles in the section on Agriculture are a reproduction of or are based on European or Irish public sector information.

Leave a Reply

Your email address will not be published. Required fields are marked *