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Lansky, Ganzger + partner
Directive
2014/95/
Foto: CanStockPhoto.com
In the case of individual countries, such as France and
Denmark, comprehensive disclosure requirements
for undertakings have already been applicable. Until
now, these have been exceptions in the EU. In the era
of globalisation, undertakings operate worldwide and,
due to interlinked supply chains, across country borders.
In the course of their global operations, human
rights violations and harmful environmental influences
can, however, also occur. For this reason, there is
mounting global pressure on companies to act in a responsible
and sustainable manner. On the international
level, a trend towards mandatory CSR reporting may be
observed, with politicians recognising the importance
of corporate responsibility for society and the environment.
In October 2014, the European Parliament and the
European Council placed an important emphasis on
“managing change towards a sustainable global economy”
with the amendments to Directive 2013/34/EU:
the amended Directive (2014/95/EU) provides for the
mandatory disclosure of “non-financial and diversity
information” in the financial reporting of “certain large
undertakings and groups”. With effect from January
2017, there is a CSR-reporting obligation. The focus is
on minimum standards for non-financial reporting,
applicable across Europe, in order to establish transparency
and comparability. The EU therefore obliges
large undertakings to disclose social and ecological
matters, as well as related risks, strategies, achieved results,
and non-financial performance indicators. This
“non-financial information” should provide information
about commitment to sustainability in business
activity and strengthen investor and consumer trust.
At the same time, the disclosure requirements promote
better comparability with regard to corporate responsibility.
The disclosure requirements only concern those
undertakings, which are public-interest entities (according
to § 189a (1) of the Austrian Commercial Code
[UGB] in Austria), whose balance sheet total exceeds
20 million euros, or whose turnover exceeds 40 million
euros, and whose annual average number of employees
exceeds 500. In this regard, undertakings of
public interest (“public interest entities”, “PIEs”) are
undertakings whose securities are admitted to trading
on the stock market of an EU Member State or that of a
signatory state of the EEA, corporate credit institutions
and insurance companies, or undertakings, which, irrespective
of their legal form, are described as “public
interest entities” in federal law with reference to their
purpose.
The information to be disclosed in the progress report
section of the management report includes details
that are necessary for understanding the undertaking’s
operations and its performance, the position of the
group, as well as the impact of its activities, and must
make reference, as a minimum, to environmental, social,
and employee matters, to respect for human rights,
82 iconannual The European Business and Investment Magazine