Non-Financial Information Statements, transparency with social impact

Non-Financial Information Statements (NFIS) have been at the centre of political and economic debate over the last year. Currently, Spanish companies that meet the requirements established by Law 11/2018 are required to prepare this type of report, which includes the information necessary to understand the evolution, results and situation of the company or group, and the impact of its activity with regard to, at least, environmental, social, personnel and governance issues. However, the debate arises when the intention to transpose Directive (EU) 2022/2464 on corporate sustainability reporting (CSRD) is announced, which would mean a drastic increase in the number of companies required to prepare the EINF. The increase in the scope of application, the greater number of reporting requirements, and the modification of the legal requirements regarding the review and validation of reports, together with the moderation of expectations for the implementation of the 2030 Agenda, have led to a delay in the transposition of the CSRD.

Uncertainty surrounding the implementation of the CSRD Directive could cast doubts on the usefulness and value of NFIS reports, but after six years under the Law 11/2018, the results in social and environmental terms are clear. For example, in the case of Ibex-35 companies, indicators show a significant increase in renewable energy consumption, a decrease in greenhouse gas emissions, greater incorporation of women in management positions, an increase in employee training by companies, and a decrease in workplace accidents. Furthermore, during the implementation of the Law 11/2018, more than 35% of the reported indicators comply with the requirements that future European standards, such as the CSRD, would set.

All in all, NFIS provide a clear social value by improving corporate transparency and enabling society to better understand the consequences and impact of business activity. Providing accessible and accurate information on social and environmental issues, as well as on employee working conditions and good governance within the company, improves the company's image and its relationship with all actors, whether they are customers, employees, shareholders or ordinary citizens. In this context, the independent review and validation of NFIS by auditors is essential, as it guarantees the methodological consistency and reliability of the information provided. It is the intervention of the auditors that gives credibility to the company and assures the customer, shareholder, or anyone interested in the functioning of the company, the transparency required by regulatory standards. In short, it is only through collaboration between the company and the audit team that the proven social value associated with NFIS can be realised, and this issue transcends the transposition of the CSRD Directive.