Everything You Need to Know About Non-Financial Reporting in 2024
Legal requirements, benefits, and non-financial responsibilities for companies with over 500 employees
What is a Non-Financial Declaration?
A non-financial declaration is an annual report where companies disclose their impact on the environment, human rights, labor conditions, anti-corruption measures, and diversity. This is mandatory for companies with more than 500 employees, according to the Directive 2014/95/EU and updated national legislation.
Benefits of Non-Financial Reporting
Improved Public Image: Showcase responsibility and transparency to clients and investors.
Attract Investors: Investors prefer companies aligned with ESG values.
Legal Compliance: Avoid fines and penalties by meeting legal requirements.
Risk Identification: Manage environmental and social risks more effectively.
Latest Legislative Updates (2022-2024)
2024: Detailed guidelines on climate-related reporting published by the Ministry of Finance.
2023: Strengthening diversity and inclusion requirements in non-financial reports.
2022: Romania aligns with European ESG standards through the CSRD Directive, expanding reporting obligations.
Legislative Evolution Timeline
2024
Updates on climate reporting and adoption of new ESG standards.
2023
Integration of diversity and inclusion requirements.
2022
Alignment with the CSRD Directive, extending reporting obligations.
2020
Initial measures to strengthen non-financial reporting at the national level.
EU Plans for Other Types of Companies
The European Union is expanding non-financial reporting requirements through the CSRD, which will include:
Small and Medium Enterprises (SMEs): Listed SMEs will be required to report non-financial data starting in 2026.
Large private companies: Any company with over 250 employees or annual revenue exceeding 40 million euros.
Innovative startups: Support for reporting the social and environmental impact of their projects through simplified platforms.
These measures aim to create a more transparent and sustainable economy, aligned with the environmental and social goals of the European Union.
Ready to Comply?
Contact a specialized consultant to understand the requirements and implement an effective non-financial reporting system.