BIS consultation on the UK implementation of the EU Directive on disclosure of non-financial and diversity information

News types: Statements

Published: 16 February 2016

We draw attention to the Department of Business, Innovation and Skills (BIS) consultation on the UK implementation of the EU Directive on disclosure of non-financial and diversity information.

The Directive introduces European wide disclosure requirements for environmental, social, employee, human rights, anti-corruption and bribery matters, and Board diversity.  Many of these requirements are aligned with the existing UK requirements for the Strategic Report.

In particular, BIS is seeking input on:
  • The scope of the proposals
  • Member state options, whether
- the non-financial statement should be placed outside the annual report; and
- there should be assurance around the non-financial statement.
  • Whether there are existing narrative reporting requirements that can be repealed.
  • Costs and benefits of the proposals.

The consultation is open for comment until 15 April 2016 and a copy of the consultation document is available here  (PDF).

Following the outcome of the consultation, the FRC will consider any consequential amendments to the Guidance on the Strategic Report to reflect any changes in regulation.

We note that the European Commission has also recently published a consultation seeking input on the form and content of non-binding European guidelines for reporting non-financial information. As the disclosure requirements in the EU non-financial reporting Directive are similar to those in the Strategic Report, UK companies may use the FRC’s Guidance on the Strategic Report as a source of reference.

Read further information on the FRC’s activities on non-financial reporting .

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