Non-Financial Reporting Directive (NFRD)

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The Non-Financial Reporting Directive (NFRD) is a directive implemented in the European Union (EU) member states in 2018, laying down the rules on disclosure of non-financial and diversity information by certain large companies. This helps investors, civil society organisations, consumers, policymakers and other stakeholders to evaluate the non-financial performance of large companies and encourages these companies to develop a responsible approach to business. EU rules on non-financial reporting currently apply to large public-interest companies with more than 500 employees. This covers approximately 11,700 large companies and groups across the EU, including listed companies, banks, insurance companies, and other companies designated by national authorities as public-interest entities. Under Directive 2014/95/EU, large companies have to publish information related to:

  • environmental matters
  • social matters and treatment of employees
  • respect for human rights
  • anti-corruption and bribery and
  • diversity on company boards (in terms of age, gender, educational and professional background).

Links

Directive 2014/95/EU of the European Parliament and of the Council