Financial Statements Act 2008-2012 (from 2005, including 2008, 2013 and 2015 amendments)

Europe Current 2008, 2012, 2013 and 2015

2008: Amendment: Under this amendment, large businesses must account for their work on CSR in their annual reports (from the financial year 2009 and onwards). The aim is to inspire businesses to take an active position on social responsibility and communicate this. The statutory requirement is part of the Government’s action plan for CSR (May 2008) and is intended to help improve the international competitiveness of Danish trade and industry. Businesses covered by the Act are those with (1) Total assets/liabilities of DKK 143 million, (2) Net revenue of DKK 286 million, and (3) An average of 250 full-time employees. Subsidiaries are exempt from having to report on social responsibility if the parent company does so for the entire group. The explanatory notes to the amended law, and accompanying guidance documents, refer to and encourage the use of the GRI Guidelines. Businesses covered by the statutory requirement must report on: The business’ social responsibility policies, including any guidelines or principles for social responsibility the business employs; and how the business translates its social responsibility policies into action, including any systems or procedures used. If the business has not formulated any social responsibility policies, this must be reported.

2013: This amendement has two key points: firstly, introducing mandatory reporting on climate change and human rights impacts and secondly, companies are required to set a target of the underpresented gender in the Board of Directors and implement a diversity policy to increase the share of the underpresented gender at other management levels

2015: In 2015, stricter expectations were implemented, regarding expanding firstly the list of issues, on which the companies should report on: climate change, human rights impacts, anti-corruption, environment and social and labour relations and secondly, including not only policies, actions and results, when reporting on these issues, but also risks, due diligence processes and KPIs (updates to the 99a). If the companies do not have policies put in place in any of the issues, they should explain why this information is missing (explain and why was introduced as part of the stricter regulations in 2015).
This was part of the implementation of EU Directive 2014/95/EU on the disclosure of non-financial information and will be in force, starting financial year 2016 for listed companies (around 50 companies) for financial year commencing 2016 and the rest of the companies for financial year, commencing 2018.
With the 2015 regulations, 99b remains unchanged (Set a target for the share of the underrepresented gender at board level, state fixed period, when it will be achieved, in addition to tracking performance; policy, actions and results for increasing the number of underrepresented gender at other management levels), but there is a new clause 99c, regarding companies in the resource extraction industry, which should disclose information on the actual tax payments to the authorities and payments under 750.000 DKK may be omitted from the report, whether it is a single or a series of related payments.

Scope

General sustainability/ESG/non-financial

Industry sectors covered by the instrument

All/none specified

Organizations covered by the instrument

Large companies in accounting class C, listed companies and state-owned companies in accounting class D (according to the Financial Statements Act)

Issuer type

Business/Trade/Industry

Type of instrument

Legislation

Mandatory or voluntary

Mandatory

The geographical scope

National/federal

Project Partners