Disclosure of non-financial and diversity information
by large companies and groups
Directive 2014/95/EU on disclosure of non-financial and diversity information 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:
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.
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).