In February 2020, the European Commission launched a public consultation on the Non-Financial Reporting Directive (NFRD). The consultation aims to help the Commission collect data and opinions on the shortcomings of current legislation and on possible ways to improve it.
The NFRD, introduced by the European Union in 2014, obliges certain companies with more than 500 employees (or 250 in some states) to disclose relevant environmental, social and governance data. It entered into force in all Member States in 2018 and currently affects approximately 6,000 companies in Europe. In the context of the European Green Deal, the Commission committed to review the Directive this year in order to boost sustainable finance and help investors and civil society have access to more comparable, relevant and reliable data. Following the consultation, the draft revised text is due to be published later this year or in early 2021.
Transparency is one of the core values of amfori: we have committed to advocate for greater transparency of supply chains in the EU Policy agenda 2024, we began this year’s Unleash Opportunity conference with a webinar on Transparency and we work on it with our members through our Transparency Project Group.
amfori replied to the NFRD consultation asking the European Commission to ensure that:
- the European Union develops or helps to develop a reporting standard in collaboration with all relevant stakeholders
- the Non-Financial Report is considered equally important as the Financial Report
- the needs of SMEs are taken into account when it comes to the administrative burdens and costs that extra-reporting requirements could generate
- the legislative review will bring clarity and simplification to the text and allow for a pragmatic approach of business needs
Our experts from the Advocacy team are monitoring legislative developments to help our members stay informed. Keep an eye on our website for further updates.
If you want to know more about amfori’s Advocacy work, please get in touch with firstname.lastname@example.org, Social & Environmental Policy Advisor.