The specific areas of disclosure required cover reporting on a company’s environmental risks, social and employee situation, human rights, anti-corruption and bribery issues as well as disclosing information on diversity within their board. The EU has proposed that the information could be disclosed within a management report within the company’s annual report and accounts – in the UK this would form part of a company’s strategic report – or within a separate document that should be made publicly available no more than six months after the balance sheet date, on the undertaking’s website. If this option is used it should be referred to in the management report. The UK government is seeking opinions on whether having the option of a separate document for non-financial information would be of use within the UK.
EU countries need to implement the directive by by 6 December 2016, to apply to financial years starting on or after 1 January 2017. The deadline for the consultation is 15 April 2016.