The EU’s Directive 2014/95/EU requires large companies to disclose non-financial information related to environmental, social, and governance (ESG) matters in their annual reports. However, a recent study from Nyenrode Business University found that simply mandating reporting won’t guarantee enhanced transparency. In fact, the Directive's flexibility and weak enforcement make it less effective, and more costly, for companies that are not motivated to share detailed information.

Organizations must restore the balance between business continuity and concern for people, nature and society, according to Prof. Albert Plugge in his inaugural speech on June 14. Plugge is professor of ESG Transformation & Digital Innovation at Nyenrode Business University. "Financial interests have prevailed since the industrial revolution, but that concept is no longer tenable."

There is an urgency to incorporate human rights policy into your business operations, as stated by Yulia Levashova, Assistant professor at Nyenrode Business Universiteit. Besides a moral duty to take good care of your employees and ensure that your company respect human rights, it also makes a ‘good business sense.’

The non-financial reporting landscape is changing rapidly. The Corporate Sustainability Reporting Directive (CSRD) brings substantial reporting requirements that will be both challenging for your business, as well as provide opportunities.