AUSTRIA.EU.NFRD.2019.10.01.Pdf
Copyright © Development International e.V., 2019 ISBN: 978-3-9820398-3-1 Authors: Chris N. Bayer, PhD Juan Ignacio Ibañez, LL.M. Jiahua (Java) Xu, PhD Title: A New Responsibility for Sustainability: Corporate Non-Financial Reporting in Austria Date published: October 1, 2019 Funded by: iPoint-systems gmbh www.ipoint-systems.com Executive Summary The EU Non-Financial Reporting Directive (NFRD) is a new regulation that seeks to “increase the relevance, consistency and comparability of information disclosed by certain large undertakings and groups across the Union.”1 Large undertakings in EU member states are not only required to report on their financial basics, now they are also required by Article 1 of the Directive to disclose their non-financial performance relevant to their business impact. This would include adverse consequences they have notably on the environment, labor rights, human rights, and how they handle diversity matters and the risk of corruption, whether as a function of their own business or actors in their supply chains. “You manage what you measure.” In accordance with the Directive, the Austrian transposition stipulates that the non-financial declaration must state which reporting framework was used to create it, as well as apply non-financial key performance indicators relevant to the particular business. These requirements are the impetus behind this study and our point of departure: We systematically assess the degree of non-financial transparency and performance reporting for 2018, applying an ex-post assessment framework premised on reporting frameworks as per the Global Reporting Initiative (GRI) and the United Nations Global Compact (UNGC). By benchmarking all Austrian companies subject to the EU NFRD-transposed law on the topics required to be disclosed – environmental, human rights, employee, social (gender), and anti-corruption matters – this study reveals which companies make an effort to show their degree of responsibility, and to what degree.
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