Non-Financial Reporting Directive

The Non-Financial Reporting Directive (NFRD) is an EU regulatory framework compelling over 11,000 companies to monitor and disclose their ESG performance. It applies to large entities with over 500 employees operating within the EU. Covered entities are required to include non-financial information in their annual reports, detailing their policies, risks, and outcomes related to environmental impact, social responsibility, employee welfare, human rights adherence, and efforts to combat corruption and bribery. 

The directive aims to enhance transparency and accountability, providing stakeholders with insights into a company’s societal and environmental footprint. The first report under the Corporate Sustainability Reporting Directive (CSRD), succeeding NFRD, is due in 2025 for the financial year 2024.