Key aspects of the NFRD include:
- Non-Financial Disclosure: The directive mandated that large public-interest companies disclose ESG factors, including their impact on the environment, employee treatment, and efforts to combat corruption.
- Enhanced Stakeholder Engagement: By requiring non-financial disclosures, the NFRD aimed to provide stakeholders with the necessary information to assess companies' sustainability efforts.
- Transition to CSRD: The NFRD was replaced by the CSRD, which extends the reporting requirements to more companies, providing a more detailed and comprehensive framework for sustainability disclosures.
The NFRD was a significant step towards increasing corporate transparency and sustainability reporting, and its replacement by the CSRD marks a further commitment to improving global corporate responsibility in the face of pressing environmental and social challenges.
