EU Companies Face mandatory CSR Reporting in 2016. Comply or explain
DIRECTIVE 2014/95/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
As of 2016, all companies registered in the EU with more than 500 employees are by European law forced to report on their non-financial, environmental and social impact. If you are Medium Enterprise and are growing fast, with a good business culture but no formal CSR policy yet, this is the time to start thinking about one!
Here are the 7 key issues you should have some form of policy on, and you are required to report on all these topics.:
- General transparancy: is there any CSR policy, code of conduct? Why and why not?
- Environmental matters
- Social matters
- Employee matters
- Human Rights matters
- Corruption and Bribery
For each topic the report should include:
- A description of the policy pursued, and the outcome of those policies;
- The principal risks related to those matters linked to the companies operations including, where relevant and proportionate, its business relationships, products or services which are likely to cause adverse impacts in those areas, and how the undertaking manages those risks;
- And, non the least, the key performance indicators related to CSR and relevant to the business.
- In general, the EU want to see that you either comply or explain.
Which tool can you use to start reporting? There are many options:
“In providing this information, undertakings which are subject to this Directive may rely on national frameworks, Union-based frameworks such as the Eco-Management and Audit Scheme (EMAS), or international frameworks such as the United Nations (UN) Global Compact, the Guiding Principles on Business and Human Rights implementing the UN ‘Protect, Respect and Remedy’ Framework, the Organisation for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises, the International Organisation for Standardisation’s ISO 26000, the International Labour Organisation’s Tripartite Declaration of principles concerning multinational enterprises and social policy, the Global Reporting Initiative, or other recognised international frameworks.” ( from the Directive)
For help on the reporting side itself, GRI has a great course on this for PA and HR departments who want to start reporting. For help on starting a CSR strategy, that’s what I have to offer.
For the directive itself, follow the link: http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32014L0095&qid=1421170320518&from=EN