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The EU Directive on NonFinancial Reporting: A Shift Towards Transparency and Reporting Quality

April 4, 2019

In October 2014, the European Commission passed the NFR (NonFinancial Reporting) directive. The legislation introduced new corporate transparency requirements for large publicly listed companies—considered public interest entities—in 28 EU countries. EU member states are already working to integrate the Directive’s provisions into national law, with the first company disclosures expected in 2018.


Non-financial information (NFI) disclosures provide transparency on the environmental and social impacts related to their business’s operations. From a multi-stakeholder perspective, NFI disclosures enable consumers to make informed judgement about companies and brands they purchase from, and they enable investors to better assess the true value of potential investments based on sustainable business practices. Stakeholder demands for such disclosures have resulted in corporate transparency legislation. The European Commission has followed suit on a grand scale with the EU NFR (Non-Financial Reporting) directive which will require companies to report on the full range of Corporate Social Responsibility impacts.


Download EcoVadis’ whitepaper and learn more on the impact of this directive on companies.

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