The Non – Financial Reporting Directive (NFRD) is under revision
Potential Future Changes
Selected results of public consultation
Companies that must comply
EU rules on non-financial reporting only apply to large public-interest companies with:
Timeline and key dates
A global, consistent and comparable non – financial reporting
Initiative requested by WEF’s International Business Council of CEOs – to help them identify priority universal metrics (out of 1,000s) for long-term value creation to enable more consistent and comparable reporting for their stakeholders, including investors.
WEF collaborated with Deloitte, EY, KPMG and PwC to advance this effort. Consultation draft presented at Davos in Jan 2020.
Robust consultation process to collect feedback from IBC members, corporates, investors, standards setters and others led to a final updated set of recommendations.
Engagement with standard setters drove progress towards a systemic solution.
There is significant support for this initiative, its objectives, and the metrics, and a desire by some to go further, while others find some of the metrics very challenging.
The WEF released the ‘Measuring Stakeholder Capitalism: Towards Common Metrics and Consistent Reporting of Sustainable Value Creation’ paper on the 22nd September 2020.
The paper contains 21 core metrics (well-established standards) and 34 expanded metrics (wider scope/ impact) across 4 pillars: people, planet, prosperity and governance – recommended for adoption as soon as possible in mainstream reporting (eg, front of annual report).
