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The EU Non-Financial Reporting Directive (NFRD) (2014/95/EU) requires large corporates, including credit institutions, listed companies, and insurance companies with more than 500 employees (approximately over 6000) to disclose information on how they manage environmental and social issues. This allows investors and policy makers to review the non-financial performance of firms and encourages them to adopt a more social and environmental approach to conducting business.
The NFRD amends and requires firms who fall within scope to include non-financial information in their annual statements from 2018 onwards (although this is currently non-binding).
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