The requirements set by the Directive are meant mainly for large European companies, although some foreign companies will also be covered. Is it accurate to say that any large company (regardless of its main headquarters) will have to comply with the requirements provided it is listed in the EU market?

The scope of application of the Directive includes certain large companies and groups. According to Article 1 of the Directive, the new disclosure requirements on non-financial information apply to large public-interest entities with more than 500 employees. The concept of public-interest entities is defined in Article 2 of the Accounting Directive (2013/34/EU), and includes companies listed in EU markets, as well as some unlisted companies such as credit institutions, insurance companies, and other companies, that are designated by Member States because of their activities, size, or number of employees. Although large companies listed in EU-regulated markets, but registered in Third World countries were included in the scope of the initial European Commission proposal, they have not been reflected in the final text. It is estimated that around 6,000 companies will be subject.


GRI News

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