What is the new law on non-financial information?
The Spanish Law 11/2018 on non-financial information and diversity was born after the obligation to comply with the European directive 2014/95/EU on the disclosure of financial information and diversity.
It required EU member countries to create legislation requiring companies with certain characteristics to publish information (Sustainability report) beyond their income statements. In other words, to disclose information on social and environmental matters with the aim of improving sustainability .
Who is mandatory to comply with the legislation?
The companies obliged to prepare and present the non-financial report are all those companies with:
- Companies with more than 250 employees that either have the status of public interest entities in accordance with the legislation on auditing of accounts, with the exception of entities that have the status of small and medium-sized companies in accordance with Directive 34/2013, or, for two consecutive financial years, meet, on the closing date of each one of them, at least one of the following circumstances
- Companies whose total value of their assets exceeds 20 million euros.
- Companies whose net turnover exceeds 40 million euros
What is the sustainability report?
It is a report that certain companies must prepare and accompany their management report. It must collect the necessary information to understand the impact of their activity on society. That is, information on environmental and social issues, as well as on personnel, respect for human rights and the fight against corruption and bribery.
Its main objective is to improve management towards a sustainable world economy with social justice and environmental protection. In addition, it is a tool that helps to increase the confidence of investors, consumers and society in general.
Over the past few years we have seen a clear trend among companies to publish and communicate more information on sustainability issues, motivated mainly by consumer and investor demand for transparency.
This new law means that a greater number of companies must join the new regulations and comply with the established standards. To do this, companies must design a strategy to prepare and present a report with quality information, involving all areas of the organization.
Team and KnowHow at ClimateTrade, your sustainability partner
At Climatetrade we rely on an expert team in the field of non-financial reporting, and also have support of proprietary digital tools. We advise and guide your company in this process, step by step.
Contact us. firstname.lastname@example.org