Non-Financial Reporting Directive

The Non-Financial Reporting Directive (NFRD) is an EU regulation requiring large companies to disclose information about their environmental, social, governance, and ethical practices. It aims to promote transparency and accountability, helping investors and stakeholders understand how businesses manage issues like climate change, human rights, and diversity. This way, companies are encouraged to operate more sustainably and responsibly, aligning their strategies with societal expectations and sustainability goals. The directive covers organizations across various sectors and emphasizes the importance of comprehensive, reliable reporting beyond just financial performance.