In 2014 already, the European Parliament and the EU Member States adopted a new Directive as regards disclosure non-financial and diversity information by certain large undertakings and groups, which has to be implemented by June 2016. The Directive aims at increasing transparency concerning environmental and social aspects within the EU. At the beginning of January 2016, the EU Commission has started a public consultation on the non-binding guidelines on the methodology for reporting non-financial information, which came to a close today and in which the Chamber of Labour participated actively both at national and European level.

Disclosure shall ensure comprehensive picture of the company

The already mentioned Directive as regards non-financial aspects shall ensure that companies disclose information on environmental, social and employment issues as well as with regard to upholding human rights and combating corruption and bribery. The objective of the disclosure is to provide stakeholders with a meaningful and comprehensive picture of a company's position and performance. The Commission’s consultation was concerned with gathering opinions with regard to the non-binding guidelines on the methodology for reporting non-financial information, which the Commission presented in December 2015.

Global Reporting Initiative should form the basis of non-financial information

From the point of view of the Chamber of Labour, non-financial information should be based on the Global Reporting Initiative, which by now has become a globally recognised reporting standard. One foundation of the report is a materiality analysis, which defines those natural persons and corporate entities, which are significantly affected by an organisation’s activities, products and services. Hence, the non-binding guidelines have to ensure the information needs of these stakeholders. In addition, non-financial information has to depict as concrete and quantitative as possible via performance indicators the impact on employees, on suppliers in the value chain, on consumers and on the environment. Only then, the advised consistence and comparability of the reports will become possible. On that basis, stakeholders are able to articulate their requirements. Furthermore, all those key indicators shall be laid down apodictically in the guidelines, which provide cross-sector validity on a company’s sustainability performance. One of the most important points is that currently several Member States are obliging companies to disclose non-financial information and that these guidelines must under no circumstances be allowed to fall short of the already existing fields of application and reporting standards. It now remains to be seen how the Commission will rate the individual contributions to the consultation and which steps it will subsequently be taking. The Chamber of Labour will continue to make sure that its proposals will be listened to and adopted.

Further information:

AK Position Paper on the Public consultation on non-binding guidelines on methodology for reporting non-financial information