EU Directive 2014/95/EU on the disclosure of non-financial and diversity information (NFR) amends the Accounting Directive 2013/34/EU.
It requires some large companies to disclose information on policies, risks and outcomes on environmental matters, social and employee aspects, respect for human rights, anti-corruption and bribery issues, and diversity in their board of directors.
The Carbon Disclosure Standards Board has produced a handbook on reporting under the NFR (bit.ly/2dYLll1). It includes examples from annual the reports of European companies to show how others could respond to the requirements of the NFR. The 2015 reports from oil and gas company BP, mining business BHP Billiton, utility firm Pennon Group and retailer Marks & Spencer are all featured.
The guide offers four recommendations for achieving best practice. They are: strengthen the relationship between environmental matters and overall corporate strategy, performance and prospects; ensure the report is clear and concise; go beyond climate change – environmental reporting is more than about emissions; and apply guiding principles.