NFRD is the Directive 2014/95/EU. This EU law set rules on mandatory reporting of non-financial and diversity information, such as disclose information on the way they operate and manage social and environmental challenges by public-interest entities (PIE). This Directive amends the Accounting Directive, that is Directive 2013/34/EU. EU rules on non-financial reporting currently apply to listed companies, banks, insurance companies, and large public-interest companies with more than 500 employees. NFRD can be used as a framework for stakeholders, such as investors, policy makers, and consumers, evaluate the non-financial performance of companies, and so it pushes companies to behave more responsible when doing business. The Corporate Sustainability Reporting Directive (CSRD) adapted in April 2021 by the European Commission would amend the NFRD.
Published in Chapter:
Non-Financial Reporting: A Comparative Analysis With a Focus on the Combat Against Money Laundering – Evidence From Major European Banks
Catia Nunes (Nova School of Business and Economics, Portugal) and Leonor Fernandes Ferreira (Nova School of Business and Economics, Portugal)
Copyright: © 2022
|Pages: 28
DOI: 10.4018/978-1-7998-9410-0.ch009
Abstract
This chapter analyzes disclosures on anti-money laundering made by the largest banks in Germany, France, and the United Kingdom. Directive 2014/95/EU has transformed the way banks with more than 500 employees disclose non-financial information. The findings show that between 2013 and 2017 compliance has increased, while understandability has remained the same. Despite the fact that a common regulation is applied, this research highlights differences and similarities in disclosures of non-financial information among banks. It adds an overview of the non-financial reporting in the banking sector to the literature, which is not limited to a specific country.