The Non-Financial Reporting Directive requires large companies to publish regular reports on the social and environmental impacts of their activities. French companies are considered as world leaders in the in this area.
Ahead of the revision of this text, AFEP stresses the following key points:
- A harmonised non-financial reporting framework developed under EU leadership is needed. It should however aim at sufficient convergence with existing reporting initiatives to avoid that EU companies have to comply with several standards when they operate worldwide. Furthermore, companies should be put at the heart of the standardisation process.
- Non-financial reporting obligations should be extended to non-EU companies operating in the EU.
- Companies need to remain in control of the definition of what material information is. They are ready to disclose how they define materiality.