The provisions of an EU Directive regarding the disclosure of non-financial and diversity information by large companies have been transposed into Irish law. Directive 2014/95/EU applies to companies with more than 500 employees. The new regulations mean such companies operating in Ireland will have to publish information relating to their Corporate Social Responsibility (CSR) for financial years after 1 August 2017. Such reports should include information on companies’ policies, performance and impact in the following areas: environmental protection, social responsibility and treatment of employees, respect for human rights, anti-corruption and bribery, and diversity on company boards (in terms of age, gender, educational and professional background).
The EU Directive affords companies significant flexibility in how to publish the CSR information. The EU Commission recently published guidelines on non-financial reporting but companies are free to report in a manner best-suited to the nature of their business. The Irish regulations allow scope for publication of the information on companies’ websites or as part of their annual returns.
The EU Commission describe non-financial disclosures as essential in achieving the EU objectives of “more robust growth and employment and increased trust among stakeholders, including investors and consumers.” They also maintain that “transparent companies perform better over time, enjoy lower financing costs, attract and retain talented employees and are ultimately more successful.”
The regulations are in effect in Ireland as of Monday 21 August 2017.
Directive 2014/95/EU can be read in full here.
The transposing legislation can be read here.