For instance, the Directive 2014/95/EU (or NFRD) requires companies to include a non-financial statement as part of their annual public reporting obligations.
At present, the preparation and disclosure of this statement is mandatory only for large enterprises. However, the EU Commission is preparing an amendment to the existing Directive to extend such obligation also to Small and Medium enterprises.
What is the GIF Non-Financial report
The GIF Non-Financial Report is a document summarizing:
- a brief description of the organization’s business model
- a description of the policies pursued in relation to those matters
- the outcome of those policies
- the principal risks related to those matters including, where relevant and proportionate, its business relationships, products or services which are likely to cause adverse impacts in those areas, and how the group manages those risks
- the non-financial key performance indicators relevant to the specific business.
This document also includes information on the due diligence processes implemented by the undertaking regarding, where relevant and proportionate, its supply and subcontracting chains, to identify, prevent and mitigate existing and potential risks that may result into future adverse impacts.
The Final Assessment report is the supporting document of the non-financial report.