- “non-financial reporting directive”
- transposition in Austria: NaDiVeG
- large companies only (PIEs)
- member states could choose some details
- adopted in 2014, first applicable 2017
- 2 non-binding guidelines
- in 2017 further non-binding guidelines about reporting methodology
- in 2019 further non-binding guidelines about climate-related information
- also includes
- environment
- social matters
- employees
- human rights
- corruption and bribery
- diversity (PIEs only)
- comply or explain why not
- CH has developed a similar standard in 2024
Actual Affects
- check for presence only
- supervisory board examines content
- can be offloaded to external auditor
- free choice of reporting standard
- choice between separate report or section in management report
- wording change
- non-financial report → sustainability report
Transpositions
- some countries require further topics
- differences in
- PIEs definition
- separate report allowed
- independent assurance mandatory
- consistency requirements
Requirements
- disclosure requirements
- non-requirements
- KPIs → cherry-picking possible in report
- diversity information for listed companies
Goals
- enhance the consistency and comparability of non-financial information
- indeed, disclosure of non-financial information is vital for managing change towards a sustainable global economy
Deficiencies
- report by EU in 2021
- enables Green Washing too much
- no requirement for reporting standard
- comparability and consistency is not mandatory
- e.g. not part of management report but separate
- missing validation/reliability proof
- only companies in scope (PIEs)
- missing Sanctions/enforcement