EU requirements on companies' non-financial reporting (2014)

The EU Parliament adopted the non-financial reporting directive in September 2014.  This page includes background information and commentaries on the process leading up to this vote.  A detailed description of the directive is available here.

Background

In April 2013, the European Commission adopted a proposal to enhance transparency of company reporting on social and environmental issues. 

In February 2014, MEPs and the Council reached a compromise on the proposed regulation.  The new regulation would require publicly listed European companies with more than 500 employees to disclose policies and risks on human rights, employee-related issues, diversity, and the environment.  Official press release announcing the compromise

This new mandatory requirement was welcomed by the European Coalition on Corporate Justice and its members NGOs as a tool for enhanced transparency and accountability.  However, the coalition lamented that the scope of the regulation was weakened by member states, including Germany, Poland and the UK.

The European Parliament adopted a version of the proposal in April 2014.  See the announcement here.  EU member states in the Council are expected to vote on the proposal in the coming weeks.

This page includes commentaries (by NGOs, MEPs & others), company statements, and selected media coverage following the February 2014 compromise and the European Parliament's vote for the reform in April 2014.


Commentaries

On April 2014 vote:

"Assessment of the EU Directive on the disclosure of non-financial information by certain large companies"
European Coalition for Corporate Justice, 4 Jun 2014

"Pointing the Way Forwards on Non-Financial Reporting"
Caroline Rees, Shift, 22 Apr 2014

"New EU law to help investors pick good corporate citizens"
Simon Jessop & Jemima Kelly, Reuters, Chicago Tribune (USA), 21 Apr 2014

"FIDH welcomes the European Parliament’s vote on the non-financial reporting reform"
FIDH, 18 Apr 2014

"European Parliament approves mandatory corporate social responsibility rules"
Estelle Masse & Peter Micek, access blog, 17 Apr 2014

"The EU law on non-financial reporting - how we got there"
Richard Howitt, European Parliament Rapporteur on Corporate Social Responsibility, in Guardian Sustainable Business (UK), 15 Apr 2014

"EU vote on non-financial reporting ‘historic’ for sustainable investment"
Blue&Greentomorrow, 15 Apr 2014

"GRI celebrates new era for non-financial information disclosure in the EU"
Global Reporting Initiative, 15 Apr 2014

"European parliament votes for rules on corporate accountability and business transparency"
European Coalition for Corporate Justice, Amnesty Intl. 15 Apr 2014

"Landmark Day in the Quest for Responsible Business - European Vote"
Richard Howitt, European Parliament Rapporteur on Corporate Social Responsibility, 15 Apr 2014

On February 2014 proposal:

"The time is now for company non-financial reporting"
Richard Howitt, European Parliament Rapporteur on Corporate Social Responsibility, 18 Feb 2014

"Urgent call to prevent failure of EU reform of Corporate reporting - Non Financial Reporting proposal 2013/0110 (COD)"
Amnesty International European institutions, CIDSE, European Coalition for Corporate Justice, European Trade Union Confederation, Friends of the Earth Europe, 21 Feb 2014 

"Companies required to report on environmental and social impacts - compromise reached on EU reform"
European Coalition for Corporate Justice, 26 Feb 2014

"Short statement from Richard Howitt MEP on provisional agreement between Parliament and EU Government negotiators on the proposed EU directive on company non-financial reporting" Richard Howitt, European Parliament Rapporteur on Corporate Social Responsibility, 26 Feb 2014

"UK government succeeds in weakening EU corporate transparency reform"
CORE Coalition, 26 Feb 2014

"EU compromise on non-financial reporting reform: companies to disclose their social and environmental impacts"
FIDH, 28 Feb 2014

"EU to force large companies to report on environmental and social impacts"
Jerome Chaplier, European Coalition for Corporate Justice, on Guardian Sustainable Business (UK), 28 Feb 2014


Company statements

"Aviva welcomes EU vote on green disclosure"
Mike Foster, Financial News, 27 Feb 2014


Selected media coverage

"UK finally backs EU's green reporting legislation"
Jessica Shankleman, BusinessGreen (UK), 26 Feb 2014

"New EU rules require companies to report social impact"
Nicholas Hirst, European Voice, 26 Feb 2014