The directive is aimed at companies and undertakings with on average more than 500 employees. This means that approximately 18 000 companies will be affected by this directive. The companies affected by the directive will be required to publish a non-financial report alongside the annual report.
As a minimum, the companies will be required to report on environmental and energy matters, social matters, human rights and instruments in place to fight corruption and bribery. The report should describe the policies and practices that have been put in place in these areas, results and potential risks. If no policies are in place in any of these areas, the company concerned must offer an explanation. In an effort to clarify the reporting requirements, the legal affairs committee in the European Parliament amended the directive proposal to state that companies must explicitly report on:
- Energy use, including renewable energy;
- Air pollution.
Negotiations on the final legislative text is currently taking place between the European Parliament and the Council, representing the Member States.