EU Environmental Reporting Handbook

What does environmental reporting look like in line with the EU Non-Financial Reporting Directive?

Recent years have seen an increased appreciation of the need for decision-useful environmental, social and governance (ESG) information to help drive sustainable financial markets.

As we obtain a better understanding of the potential risks associated with climate change and environmental degradation, companies are expected to provide evidence of how they are responding, to strengthen decision-making by investors, lenders, and insurers in allocating capital and in underwriting risks.

In Europe, one of the most significant developments has been the transposition of the Non-Financial Reporting Directive, and its entry into force in Member States legislation. It seeks to facilitate “relevant, useful and comparable information by undertakings”.

The Directive 2014/95/EU on the Disclosure of Non-Financial and Diversity Information the (NFR Directive) requires certain large companies to disclose information on their business models, policies, risks and outcomes as regards to environmental matters, social and employee aspects, respect for human rights, anti-corruption and bribery issues, and diversity in their board of directors.

As part of the European Green Deal, the European Commission is reviewing the NFR Directive in 2020. 

This Handbook follows on from CDSB and CDP’s First Steps review of corporate climate and environmental disclosure under the EU Non-Financial Reporting Directive, and is an update to the EU environmental reporting handbook published in 2016. To demonstrate how companies have responded to the NFR Directive, this Handbook contains annotated examples of disclosures on environmental matters from annual reports of select European companies.

Download the EU Environmental Reporting Handbook:

Download online version | Download print version 


Chapter 1 

  • About the EU Non-Financial Reporting Directive 
  • Where to report?
  • What to report?
  • Which companies are required to disclose? 
  • Related corporate reporting developments 

Chapter 2 
Examples of disclosures on environmental matters

  • Background
  • Coverage of annual reports 
  • Description of business model
  • Description of policies
  • Outcome of policies 
  • Principal risks
  • Key performance indicators (KPIs)

Chapter 3 
Tips and resources

  • Tips for effective disclosures
  • References and further guidance 

Download the EU Environmental Reporting Handbook:

Download online version | Download print version 

With the contribution of the LIFE Programme of the European Union

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