Many companies today need to develop a sustainability plan if they want to effectively combat relevant issues such as climate change and greenhouse gas emissions. The elaboration and development of a corporate sustainability plan helps companies to have a better public image, greater efficiency and better brand representation. Ampliar información
Statement of non-financial information
The Non-Financial Information Statement (NFS) is a report that companies have to generate according to certain criteria established on the basis of Law 11/2018 and reports on all non-financial matters of the company including environmental, social and governance aspects. The main objective of the EINF is to provide corporate transparency on the company’s activities.
Is it mandatory to generate and submit your company's EINF?
The obligation to present the consolidated non-financial information statement shall apply to all those companies with more than 250 employees that are either Public Interest Entities or that have met at least one of the following criteria for two consecutive financial years at the closing date of each one of them:
– That the total of the asset items exceeds 20,000,000 euros;
– The net annual turnover exceeds 40,000,000 euros.
In other words, all companies that fall within the scope of application of the Capital Companies Act (SRL, SA and limited partnerships by shares), with more than 250 employees and which are either considered to be Public Interest Companies or which, for two consecutive financial years, have met at least one of the two circumstances set out above in relation to the volume of assets or turnover, are obliged to present the non-financial information statement on an individual level.
ANTICIPATING CHANGE - CSDR AND ESRS
With 4 years having passed since the publication of the regulation governing the EINF, Law 11/2018, transposed by Directive 2014/95/EU of the European Parliament and of the Council of 22 October 2014, is amended by the approval of the proposed Corporate Sustainability Reporting Directive (CSDR) on 10 November 2022.
The aim is to bring sustainability reporting in line with financial reporting, allowing the public to access reliable and comparable data. It will also be a step towards setting sustainability standards with new European standards that will seek to fill the gap in non-financial information being passed on to the market by introducing more detailed obligations on the environmental, human rights and social impacts of companies, based on common criteria in line with the EU’s climate goals. The European Commission plans to adopt the first reporting standards in June 2023.
It may still be a few years before it is applicable to your company, however, at Euro-Funding we are already ahead of the regulations and we want our Clients not to be left behind. Therefore, we try to start working with our clients as soon as possible. The implementation schedule of the new requirements of the Directive is as follows:
PIEs and large companies already affected by the EINF
PIE and large companies not affected by the EINF
Companies outside the EU with branches/subsidiaries
ARE YOU ONE OF THE COMPANIES THAT HAVE TO DRAW UP THE NON-FINANCIAL INFORMATION?
KEYS TO DRAWING UP YOUR COMPANY'S EINF
Over the last few years, a large number of questions have been raised about the elaboration and development of the NFE:
- Should I make my EINF public?
- Do I have to audit it?
- How do I collect and calculate the data required by law?
- Did you know that the law includes areas such as the fight against corruption and bribery, social criteria in your procurement policy, human rights or the impact the company has on local development, as well as people management, climate change, circular economy or biodiversity?
In our experience it is important to get advice so that companies can optimise their resources and verify their reports without bumps in the road.
Main steps for the correct elaboration of the NFS
- Knowing point by point the information requirements that the law 11/2018 requests. Diagnose which part of this documentation is already being compiled and which will have to be compiled with quantitative and qualitative KPIs. Additionally, assign those responsible for each area and conduct interviews.
- Once the information has been gathered, a materiality analysis is carried out based on the needs and expectations of internal and external stakeholders, as well as sector benchmarking and direct competition.
- Subsequently, we generate a detailed, dynamic and visual report, for both internal and external communication (to suppliers, customers and potential investors) of the corporate work in environmental, social and good governance matters and outstanding aspects of the organisation’s management in each area, to enhance its value.
- Finally, the report will be audited by an independent third party, so the dates necessary for the formulation and approval of the report by the Board of Directors will be coordinated in time with the selected entity.
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