Article 2 of the Directive refers to ‘guidance on reporting’ and sets out that ‘the Commission shall prepare non-binding guidelines on methodology for reporting non-financial information, including non-financial KPIs, general and sectoral, with a view to facilitating relevant, useful and comparable disclosure of non-financial information by undertakings. […]’
Recital 17 of the Directive states that, when preparing the non-binding guidelines, ‘the Commission should take into account current best practices, international developments and the results of related Union initiatives.’
Irrespectively, companies may choose to use widely accepted, high quality reporting frameworks, and this partially or in full compliance. They may rely on international, EU based or national frameworks, and, if so, specify the framework(s) that they use.
The Commission encourages companies to avail themselves of the flexibility under the Directive when disclosing non-financial information. The guidelines are not intended to stifle innovation in reporting practices.
Read the full guideline here