The European Parliament has adopted the Directive on the disclosure of non-financial and diversity information by large companies and groups. Companies falling within the scope of this Directive will be required to provide reports (the non-financial statements) on their policies, results and risks regarding environmental, social and employment issues, human rights and the fight against corruption and bribery. That includes the issues of diversity on corporate boards and corporate social responsibility.
The approved text states: "That statement should contain, as regards environmental matters, details of the current and foreseeable impacts of the undertaking's operations on the environment, and, as appropriate, health and safety, the use of renewable and/or non-renewable energy, greenhouse gas emissions, water use and air pollution. As regards social and employee-related matters, the information provided in the statement may concern the actions taken to ensure gender equality, implementation of fundamental conventions of the International Labour Organisation, working conditions, social dialogue, respect for the right of workers to be informed and consulted, respect for trade union rights, health and safety at work and the dialogue with local communities, and/or the actions taken to ensure the protection and the development of those communities. With regard to human rights, anti-corruption and bribery, the non-financial statement could include information on the prevention of human rights abuses and/or on instruments in place to fight corruption and bribery."
The obligation to disclose these non-financial statements will apply to companies with more than 500 employees, which is a total of about 6,000 companies and groups throughout the European Union. The companies will be able to use existing European or national standards for reporting information. The European Commission will also draw up its own recommendations for best practices. The Directive must still be approved by the European Council. It is supposed that it will be formally approved in the following weeks. Then the incorporation of the requirements of the Directive into national legislation will follow.
The entire text of the directive can be read on this European Parliament website, and it is even available in Czech. You can find it in the text number 5 on pages 312-346. Further information and links to related regulations are available in the press release here.
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