• Register
Return to: Home > News > Implementation concerns remain as EU adopts non-financial reporting directive

Implementation concerns remain as EU adopts non-financial reporting directive

As the Council of the European Union announces the adoption of the directive for the disclosure of non-financial information, high spirits are dampened by concerns around implementation.

The result of months of painstaking negotiation and debate, the directive will require around 6,000 listed large businesses across the EU to include environmental and social impact information in their financial reporting.

With the European parliamentary elections in May looming, negotiations intensified at the beginning of the year, leading to a draft directive being agreed between the Greek presidency of the EU Council and the European Parliament (EP) in February.

The draft was also endorsed by the Committee of Permanent Representatives (COREPER), responsible for monitoring issues on the Council's agenda.

In March the Committee on Legal Affairs (or JURI) of the EP unanimously backed the non-financial reporting rules, which in April were voted in favour by 599 votes to 55, with 22 abstentions the EP plenary session.

However, the directive has not specified how businesses are to report the information, and with no IFRS-equivalent standard setter for non-financial information reporting, consistency across member states is likely to remain an issue.

Climate Disclosure Standards Board (CDSB) managing director Mardi McBrien said she acknowledges the EU's intent, but aired concerns that "as drafted, the directive will not sufficiently address the information gap due to the lack of consistent and comparable information that will be reported."

As such, she urged the European Commission to further develop its guidance "with consistency in mind", as well as recommending member states do the same when implementing it.

CDSB technical manager and co-author of the CDSB Reporting Framework Jarlath Molloy said CDSB has been working alongside industry stakeholders, including firms and membership organisations, to help them establish ways to report "consistent, comparative and timely information".

CDSB plans to open a second consultation on the expansion of its framework in October, in the lead up to its spring 2015 publication date.

Related stories

European Parliament agrees to non financial reporting rules

Emissions reporting debate heats up

Editor's letter: Climate challenge for the profession

Top Content

    ARGA team, assemble!

    The new top team has been named that will see in root-and-branch reform at the Financial Reporting Council (FRC) as it transforms into the Audit, Reporting and Governance Authority (ARGA). Will the new duo be as dynamic as some are hoping? Robin Amlôt reports.

    read more

    FASB: a quest for simpler standards

    FASB chair Russell Golden addressed the IMA 2019 Annual Conference and Expo at the Sheraton San Diego Hotel and Marina, California, on 18 June. IMA immediate former chair-emeritus Alex Eng acted as moderator. Joe Pickard reports.

    read more

    The future of audit, and how to get there

    Two recent reports peer into the future of the audit profession. One analyses what an audit should offer, while the other looks at how the audit process will be carried out. Robin Amlôt takes a closer look at both.

    read more

    EFAA elects new president, focuses on digital future

    EFAA’s new president, Salvador Marin, outlined his key priorities for the next two years at the organisation’s 2019 annual general meeting, while outgoing president Bodo Richardt offered advice. Robin Amlôt reports.

    read more


    As the Coronavirus (COVID-19) continues to spread across the world, the International Accounting Bulletin and The Accountant will be collating all the latest news and updates from the profession on the pandemic’s impact.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.