Companies are paying more and more attention to their extra-financial performance, particularly since the introduction of the DPEF (for "Déclaration de Performance Extra-Financière") in 2019. Since then, many things have changed in terms of regulations. Here's a quick summary.
ESG (Environment, Social and Governance) reporting became mandatory for companies listed on the French stock exchange under the NRE law on new economic regulations in 2001.
It was subsequently transformed into the Extra-Financial Performance Declaration (DPEF) to comply with the 2014 European Directive on the transparency and publication of non-financial information (NFRD).
Companies must draw up the DPEF if they exceed certain thresholds :
The NFRD is being replaced by Directive (EU) 2022/2464 in December 2022, known as the "CSRD". It will gradually come into force on January 1, 2024.
The CSRD strengthens companies' sustainability reporting obligations, by broadening the scope, standardizing reporting requirements, imposing a single digital format, and making verification of information by an auditor or independent third-party body mandatory.
The DPEF thus becomes applicable to large listed companies and SMEs that meet certain criteria, as well as to non-European companies operating on the European continent if their net sales in Europe exceed €150 million. The DPEF must include a presentation of the company's business model, an analysis of the main risks associated with its activity, a presentation of policies to prevent these risks, and the results of the application of these policies through key performance indicators.
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