Transposition of EU NFR Directive: Financial Statements Act (from 2005, including 2008, 2013, 2015 amendments)

Issuer name

Danish Business Authority

Government ministry

Business/Trade/Industry

More information

2015:The current bill is making amendment to several acts of Danish legislation. Most meaningful - the Danish Financial Act amendments are a direct (and first) implementation of the EU NFR Directive into National Law (2015). The act is stating that the elaboration of a CSR report according to UN Global Compact or GRI can serve as an exemption from other financial acts as long as it covers the financial year in review and is according to the requirements in paragraph 99. 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. Companies must either report on the elements prescribed or explain why if they choose not to report. 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. In addition, requirements adopted by the Danish Parliament require disclosure on whether or not the company has policies to ensure respect for human rights and/or to reduce the climate impact of the company’s activities from 2013. Finally, the Danish Government has implemented rules on improving the gender balance in the management of large Danish companies, covering the same group of large companies, and entering into force on 1 April 2013. 2013: Amendment: introduces automatic compliance when reporting with GRI. A company that reports on CSR according to international guidelines or standards, is exempt from providing information pursuant to the Danish Financial Statements Act § 99a when the information is reported according to the following international standards and guidelines: 1) Reporting in the form of a progress report, as required by the companies participating in the UNGC 2) Reporting in the form of a report on responsible investment, as required by the signatories of the UN-backed Principles for Responsible Investment (PRI) 3) Reporting in accordance with the most up-to-date GRI guidelines

Comply or explain

True

Organizations covered by the instrument

Large private and listed companies

Target organization notes

Listed companies and to state-owned limited liability companies, irrespective of their size

Industry scope

All/none specified

Disclosure venue

CSR report, annual report

ESG coverage - E (Environment)

All

ESG coverage- S (Social)

Human Rights, Employment Conditions, Policies and Practices

ESG coverage- G (Governance)

Accountability, Anti-Corruption and Anti-Competitive Behaviour