Non-financial reporting

Our world is changing at an unprecedented pace, challenging the political, economic, societal and business norms we are used to and, as a result, the nature of our business is changing rapidly.
The 2030 Agenda for Sustainable Development

The launch of the UN Sustainable Development Goals (SDGs) has made it clear that the global community relies heavily on all sectors to work together in order to solve some of the world’s most urgent problems, including the private sector. Companies and institutional investors are being asked to contribute to the SDGs through their business activities, asset allocation and investment decisions.

“At its essence, sustainability means ensuring prosperity and environmental protection without compromising the ability of future generations to meet their needs.”

Ban Ki-Moon, formal Secretary General, United Nations

“The SDGs have fundamentally changed the game. They are the closest thing the world has to a strategy”.

Dr Jake Reynolds, Cambridge Institute for Sustainability Leadership

“The SDGs offer the greatest economic opportunity of a lifetime.”

Paul Polman, CEO, Unilever
What can business do?

A sustainable global economy is not a luxury. It is a social imperative. Policy instruments and stakeholders, especially the millennials (who await the greatest inter-generational transfer of wealth in human history from their ageing Baby Boomer parents), increasingly demand transparency on corporate social responsibility issues.

Therefore, businesses need to account to both shareholders and stakeholders on financial and non-financial performance. If they hope to attract and retain staff, investors and clients, businesses need to embrace the Triple Bottom Line of people, planet and profit.

Since 2000, GRI's (Global Reporting Initiative) Sustainability Reporting Guidelines have been used by thousands of organisations worldwide to publicly report on their impacts on the economy, the environment and society. Today, 92% of the world’s companies with the highest market capitalisation report on their non-financial performance; 74% of them do so according to GRI.  

Besides reporting standards, there are also regulatory drivers. The Luxembourgish Stock Exchange, for example, encourages listed companies to disclose their non-financial information:

  • EU law requires large companies to disclose certain information on the way they operate and manage social and environmental challenges. This helps investors, consumers, policy makers and other stakeholders to evaluate the non-financial performance of large companies and encourages these companies to develop a responsible approach to business. Directive 2014/95/EU lays down the rules on disclosure of non-financial and diversity information by large companies. This directive amends the accounting directive 2013/34/EU. Companies are required to include non-financial statements in their annual reports from 2018 onwards.
  • The 9th Principle of the  Luxembourg Stock Exchange  states that it is mandatory for entities, who wish to be quoted in the Luxembourg Stock Exchange, to provide their CSR policies (information on, and the implementation of social and environmental policies) to potential clients.


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Contact us

Valérie Arnold

Partner, Head of sustainability, PwC Luxembourg

Tel: +352 49 48 48 2285

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