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Art 225 Grenelle Act II

France Current 2010

Article 225 of the Act makes corporate sustainability reporting mandatory for companies exceeding size thresholds.

Issuer name


Government ministry


More information

The legislation, passed in 2012, requires companies to include information on their environmental and social performance, including all of the company’s subsidiaries, in their annual report—effectively turning it into the foundation for a full integrated report. The law defines the phase-in process, with large listed companies expected to comply in their 2012 reports and smaller companies (with up to 500 employees and total assets or net annual sales of €100 million) expected to comply with their 2014 annual reports. Grenelle II also requires a third-party to verify the ‘extra-financial’ information included in the report. The Decree regarding disclosure obligations for companies in 42 social and environmental fields (just a few specific indicators are mentioned) specifies that companies listing securities and companies with an annual balance or turnover of 100 million Euros and an average of 500 permanent employees are obliged to disclose certain social and environmental information as well as information relative to societal commitments in favor of sustainable development inside their annual management report. Depending on the nature of the activities or the organization, companies need to provide useful information on why certain data is not reported. The disclosed information is checked by an accredited, independent third party. The implementation schedule is progressive and depends on the size of the companies, but every company concerned needs to report for FY 2014 at the latest. The information needs to be consolidated when the company establishes consolidated statements (including companies with a non-French legal form, as long as they are a subsidiary.)

Comply or explain


Organizations covered by the instrument

Large private and listed companies

Industry scope

All/none specified

Disclosure venue

Annual report

ESG coverage - E (Environment)


ESG coverage- S (Social)

Employment Conditions, Policies and Practices, Human Rights, Social Impacts & Value Creation

ESG coverage- G (Governance)

Accountability, Anti-Corruption and Anti-Competitive Behaviour, All







Date of publication


Issuer type

Governments (governmental department, agency)

Reporting requirements

Public law and regulation

Mandatory or voluntary


The geographical scope


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