Non Financial Reporting

Mandatory Non-Financial Reporting - It's the Law from 2017

The Non-Financial Reporting Regulations 2016 is the UK's implementation of the EU Directive and applies to all large companies (including subsidiaries and groups) registered in the UK with an average of more than 500 employees that are classed as Public Interest Entities. Under this legislation, your Company must include a report on your Sustainability within your Annual Report & Accounts for reporting years starting in 2017 (i.e. your first report will be published in 2018).

What is a PIE?

In general Public interest Entities (PIEs) are classed as organisations that are either:

• listed on a regulated market,
• provide credit, provide insurance services,
• or are entities that have been designated by Members States as being of public-interest.

These are deemed to be organisations that have most impact on human rights and the environment. These include include banks, insurers and stock exchange quoted companies.

Entities not caught by the  Non-Financial Reporting requirements can still however comply on a voluntary basis if it is in their interests.

What does my business need to report?

The Non-Financial Reporting must disclose information on environmental (such as Carbon Footprint), employee, social and human rights that is relevant to their business. The framework also requires disclosures on anti-corruption and anti-bribery matters. There is a further requirement for quoted companies to include a description of their diversity policy and how it has been implemented.

If the company does not have a policy in relation to any of these matters the company should provide an explanation as to why it would not be relevant.

When do I need to report?

The first reports are to be published in 2018, for financial years starting in 2017.

There is some flexibility on how to report and companies can draw on international or European guidelines. The implementation of the Regulations is also be supported by the Financial Reporting Council’s Guidance on the Strategic Report.

Read more - The Companies, Partnerships and Groups (Accounts and Non-Financial Reporting) Regulations 2016

Contact us to discuss Preparedness for and Support with your Non-Financial Reporting