On September 11th, 2019, Gaetano Casale, Sustainability Consultant, Founder and Managing Partner of INNOVA Project Consulting, participated at the debate on Non-Financial Reporting, organized by the Romanian Association for Investor Relations – ARIR and Juridice.ro.
Along with Gaetano Casale, other renowned specialists participated: Av. Ionuț Bohâlțeanu, Managing Partner BOHÂLȚEANU AND ASSOCIATIONS, Adriana Marin, Investor Relations Department OMV PETROM, Av. Silvana Ivan, Partner ȚUCA ZBÂRCEA & ASOCIAȚII. The event moderator was Daniela Serban, President of the Romanian Investor Relations Association – ARIR.
Non-financial reporting completes the annual financial statements and must include at least information on environmental, social and employee matters, respect for human rights, anti-corruption and bribery matters. However, the legislation in force does not provide detailed information on the process to be followed for an efficient non-financial reporting.
Therefore, the debate was initiated in the context of the modification of the legislation transposing at national level the EU Directive 95/2014 on non-financial reporting, which introduced the extension of the legal obligation to prepare and publish a Report or a Non-financial Statement starting with financial year 2019 on all companies that exceed the average number of 500 employees.
Starting from the definition of non-financial reporting, the specialists discussed the legal framework that regulate non-financial reporting at national level, namely the MFP Order no. 1938/2016, the forms of reporting, deadlines for publication, the utility and benefits in relation to the investors but also the possible sanctions.
The content of non-financial reporting, the process to be followed for identifying relevant information, methodologies and standards that companies can use were discussed, and finally, issues regarding the verification of the existence of reporting and the applicable sanctions were also discussed.
During the debate, were analyzed the benefits that the listed companies can obtain by publishing periodic qualitative non-financial, such as:
- creating and maintaining a trustworthy relationship with investors and other actors in the capital market by presenting a complete picture of the company’s economic, social and environmental performance;
- effective communication with investors and other actors in the capital market in crisis situations caused by the way the company manages a specific non-financial aspect;
- presenting more non-financial information in detail allows investors to better understand the financial information published in the annual reports;
- strengthening the company’s ability to attract new investors and demonstrate to them the long-term sustainability of the company.
The recording of the debate is available at this LINK.
For those who want to deepen the issues addressed during the debate, INNOVA Project Consulting organizes a 2-day applied course between September 30th and October 1st, , 2019 in Bucharest, at the Hilton Garden Inn Hotel Bucharest Old Town. More information at this LINK