The Non-Financial Reporting Directive (NFRD) covers five key areas that companies must report on to promote transparency and sustainability in their operations:
- Environmental Matters: Information on the company’s impact on the environment, including energy use, carbon emissions, waste management, and resource efficiency.
- Social and Employee Issues: Insights into the company’s social policies, employee rights, working conditions, diversity, and inclusion efforts.
- Human Rights: Measures taken to prevent human rights abuses in the company’s operations and supply chains.
- Anti-Corruption and Bribery: Policies and actions aimed at preventing corruption, bribery, and unethical business practices.
- Diversity in Board of Directors: Information on the diversity policies for the company’s management and boards, including age, gender, and educational or professional background.
These areas aim to increase corporate accountability on sustainability and social responsibility issues. Also see: Corporate Sustainability Reporting Directive (CSRD).