EU law requires large companies to disclose certain information on the way they operate and manage social and environmental challenges. This helps investors, consumers, policy makers and other stakeholders to evaluate the non-financial performance of large companies and encourages these companies to develop a responsible approach to business.
Greater transparency is expected to make companies more resilient and perform better, both in financial and non-financial terms. Over time this will lead to more robust growth and employment and increased trust among stakeholders, including investors and consumers. Transparent business is also consistent with longer-term investment as reflected in the impact assessment of the Directive 2014/95/EU.
Directive 2014/95/EU (The EU Directive on disclosure of non-financial and diversity information by certain large undertakings and groups):
EU rules on non-financial reporting only apply to large public-interest companies with more than 500 employees. This covers approximately 6,000 large companies and groups across the EU, including
Under Directive 2014/95/EU, large companies have to publish reports on the policies they implement in relation to:
Based on EU press release.