The Non-Financial Reporting Directive came into force on 6 December 2014, giving EU member states two years to transpose it into national law. Thus, by December of this year, all member states should have adopted legislation requiring non-financial reporting and will begin publishing such reports in 2018 based on fiscal year 2017. The Directive applies to what are termed Public Interest Entities,in other words those public companies with an average of 500 employees.
The U.K. government is committed to the proposed timetable but, in the meantime, the U.K. Department for Business, Innovation, and Skills launched a two-part consultation in February this year. The first part of the consultation raises questions about the approach to implementing the Directive, with the aim of raising awareness and seeking views on the U.K.’s plans to implement the law, including the use of the flexibilities within it. The second part of the consultation explores whether there is a desire for wider reforms to narrative reporting by companies in the United Kingdom. The consultation is open until 15 April this year.
