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EU Modernisation Directive 2003/51/EC

EU Current 2003

The Directive amended the Accounting Directives and added that EU companies are required to also include non-financial information in their annual and consolidated reports, if it is necessary for an understanding of the company's development, performance or position.

Issuer name


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Such reporting should include environmental and employee matters and key performance indicators, where appropriate (consistent with Commission Recommendation 2001/43/EC). Member States may choose to exempt small and medium-sized companies from those non-financial reporting obligations. Another amendment of the Accounting Directives (Directive 2006/46) introduced an obligation for listed companies to include a corporate governance statement in their annual report. By November 2009 all Member States transposed the Modernisation Directive and most of the Member States transposed Directive 2006/46 in national laws.

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)

All, Employment Conditions, Policies and Practices

ESG coverage- Eco (Economic & General)

Economic performance







Date of publication


Issuer type

Governments (governmental department, agency)

Reporting requirements

Public law and regulation

Mandatory or voluntary


The geographical scope

International/regional (EU)

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