OPERATING IN THE EU? THE NEW EU DIRECTIVE ON NON-FINANCIAL DISCLOSURE MATTERS TO YOU
The lessons learnt from the 2008 financial crisis and recent corporate scandals related to environmental, social and governance (ESG) compliance issues, Volkswagen’s ‘dieselgate’ being the most recent one, have stressed the need for regulation in the European Union.
In essence, the new disclosure regulation of non-financial information by businesses will help measure, monitor and control the behaviour of companies and their impact on society.
Such a reporting tool should contain relevant environmental, social and governance information which will allow investors gain a better understanding of the risks and opportunities a company faces.
Over the years, corporate responsibility reporting has increasingly become a common feature among the largest publicly listed companies, however, until now, this was conducted on a voluntary basis and despite efforts to create common reporting standards, corporate responsibility disclosure lacked a legal framework and a content focus.
From January 2017, business operating in the EU with a turnover in excess of EUR 40m (USD 44m) or having 500 employees or more based in the EU will have to comply with the new regulation. This includes companies headquartered outside of the EU!
Click the button below to access our free study and find out whether your business is likely to fall under the scope of this new EU directive and what the new regulation means for your business.
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