1. The EU Directive on non-financial and diversity reporting
A Toothless Tiger?
The EU Directive on non-financial and diversity reporting

2. What is the problem?
The European Parliament acknowledged the importance of businesses divulging information on sustainability such as social and environmental factors, with a view to identifying sustainability risks and increasing investor and consumer trust.

3. Report Disclose Divulge
A detailed periodic account of a company’s activities, financial condition, and prospects that is made available to shareholders and investors
The revelation of information that was previously secret or unknown
Make known private or sensitive information!

4. Corporate divulging concealment!

5. Lack of trust
Source:

8. Lack of clear penalties for non-compliance

9. Lack of clear penalties for non-compliance
According to the CSR Europe and GRI (2017) analysis, the majority of Member States have not specified any sanctions above and beyond the current penalties for not complying with current corporate reporting legislation.
In Italy, the sanctions are “for omission of relevant information, non- compliance, or failure to submit within [the] timeframe, EUR
In Bulgaria, the non-compliance fines can extend to individuals responsible for the complying with the Directive. However, the maximum fine is about 1500 Euros.

10. What frameworks to use?

11. What frameworks to use?

12. Risk of reports being form over substance

13. A safe-harbour
information relating to impending developments or matters in the course of negotiation to be omitted … where… the disclosure of such information would be seriously prejudicial to the commercial position of the undertaking, provided that such an omission does not prevent a fair and balanced understanding of the undertaking’s development, performance and position and of the impact of its activity.

14. EU Directive as a toothless tiger?