New regulations for firms in force

New EU regulations take effect today that will see some of Ireland’s biggest companies publishing information on a range of policies from gender diversity on boards of directors to greenhouse gas emissions.

The EU regulations introduce new non-financial reporting requirements for some of Ireland’s largest companies. A regulation from the EU is a law that takes effect immediately once introduced, unlike a directive which allows a member state to implement it over time.

The regulation means large companies will be required to publish non- financial information about their company policies, and it applies to financial years beginning on or after August 1 this year.

It means the first of these disclosures are likely to become available from the second half of 2018.

The information published will be on a range of topics, including greenhouse gas emissions and energy consumption, through to social issues such as engagement with local communities and anti- corruption measures such as whistle-blowing procedures.

Large listed companies will also be obliged to disclose the diversity policy that applies to their boards of directors.

Companies categorised as both ‘public interest entities’ and ‘large’ and that have more than 500 employees must prepare and publish a ‘non-financial statement’.

That statement relates at a minimum to environmental, social and employee matters, respect for human rights, and anti-corruption and bribery matters. Where a company does not pursue policies in any of these areas, it must give an explanation as to why not. Tánaiste and Business Minister, Frances Fitzgerald said: “I believe that public disclosure of this type will help to encourage sustainable growth in Irish enterprise. I expect it will also be of interest to investors, consumers, non-governmental organisations and wider society.”

The Department of Jobs, Enterprise and Innovation said a “flexible approach” has been taken in framing the new transparency requirements, “which bears in mind the needs of both companies and those who will rely on the new disclosures”.