Since 2018, the Law on Non-Financial Information Statements requires large companies to report key information about sustainability.
In recent years, companies have started to include information about sustainability and corporate social responsibility in their annual memories and reports, thereby complimenting their own financial information.
The real reason is the increasing demand for clear, comparable and accurateinformation from society in general and from investors and customers of the company in particular.
At the end of 2018, Law 11/2018 on Non-Financial Information Statements and Diversity was adopted.
This law lays down the terms and conditions that enforce a company to submit a non-financial information statement report.
For this reason, companies are required to develop and submit the Non-Financial Information Statement (NFIS), if some of the following requirements:
- The average number of employees during the financial year, from January 2021, is above 250.
- They are to be considered public interest entities in accordance with audit legislation.
- That they meet at least two of the following conditions for two consecutive financial years:
- 1. The total of the asset amounts over 20 million euros.
In practice, listed companies are required to report on these aspects.
Sustainable transformation provides several benefits
The report will contain the information necessary to understand the evolution, the results, the situation of the group and the impact of its activity. In addition to other indicators, the following has to be reported:
- Environmental issues. Detailed information must be provided on the effects and impact of the company and its activities on the environment. Procedures and means for the prevention of environmental risks, actions to reduce the CO2 and greenhouse gases produced by the company must also be presented.
- Environmental management
- Circular Economy
- Sustainable use of resources
- Global warming
- Biodiversity protection
- Social and staff aspects.
- Information on the Respect for Human Rights.
- Information on combating corruption and bribery.
- Information about the company.
- Commitment to sustainable development
The benefits of approaching a sustainable transformation program are many in terms of attracting and retaining talent, applying defined policies for the environment, human rights, equality, diversity …
- To improve sales. The sustainability variable can play a key role in generating an attractive brand image for customers.
- Competitive Advantages. Integrating sustainability into the value chain makes a difference from competitors.
- Helps to improve reputation, which is appreciated by all stakeholders; customers, employees, suppliers and investors with environmental, social and Good Governance criteria.
- Allows to reduce risks. Identifying risks both in the value stream and all-round corporate company responsibility. Operational, regulatory, strategic, trading, reputational …. risks.
Cycling Friendly Mobility: Allied Law Enforcement
Sustainable Mobility Planning is a necessary support tool to the policies needed to address and report on this sustainable transformation.
The plan enables to define the company’s situation regarding the movement of employees concerning environmental management, pollution, the main Scope 3 greenhouse gas emissions for the company, such as those related to the forced mobility of employees to access the job.
Actions affecting both the health and safety of employees as the company’s commitment to sustainable development. A vital transformation to meet the European Union’s emissions reduction goals, estimated at 55% by 2030.
The plan sets goals for improvement and monitoring, allowing the evolution of these indicators to be collected for annual reporting.
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