What do the NFRD recommendations mean for your business?
The scope of those non-financial disclosure requirements should be defined by reference to the average number of employees, balance sheet total and net turnover.
The EU NFRD requires large undertakings – PIEs with an average of 500 employees or more – to disclose certain social and environmental information in their management statements.
This includes listed companies as well as some unlisted companies, such as banks, insurance companies, and other companies that are so designated by Member States because of their activities, size or number of employees. The definition of a PIE differs in different EU Member States, so the definition given in this NFRD factsheet are the requirements which are stated by the EU Audit legislation.
What is an EU PIE?
Your organization is likely to be a PIE if:
You’re a listed company on a regulated market who is governed by the law of an EU Member State.
You’re a bank, whether you’re listed or not.
You’re an insurance company, whether you’re listed or not.
You’re designated as a public interest entity by a Member State. For instance, you are a company which is of a significant public relevance because of the nature of your business, size, or number of employees.