Non-financial reporting: framework, obligations, examples

What is non-financial reporting?

Non-financial reporting brings together all the information a company publishes on its environmental, social and governance (ESG) performance. It complements traditional financial statements by shedding light on sustainability-related impacts, risks and opportunities.

The goal is not simply to tick regulatory boxes but to offer a transparent, structured view of a company's social responsibility (CSR). The exercise relies on normative frameworks such as the CSRD and the ESRS, which now harmonize how this data is collected and published across Europe.

Why does non-financial reporting matter?

Well-structured reporting strengthens a company's credibility with its clients, investors and employees. Large groups now require reliable ESG data from their suppliers, built into their questionnaires or ratings (e.g. EcoVadis).

Beyond this commercial requirement, reporting becomes an internal steering tool: it tracks environmental progress, assesses social and climate risks, and adjusts strategy through measurable indicators.

The regulatory framework: from voluntary to mandatory

From the NFRD to the CSRD

Originally covered by the NFRD (2014), non-financial transparency applied to a narrow scope of large companies. The CSRD (Corporate Sustainability Reporting Directive) replaced that framework in 2024 with a major expansion:

• Listed companies and large companies with more than 250 employees,
• Then, between 2026 and 2028, certain SMEs through the VSME (Voluntary SME Standard).

The ESRS standards: the technical backbone

The European Sustainability Reporting Standards (ESRS), developed by EFRAG, define the content, indicators and methodologies to disclose. They cover 12 thematic standards across environmental (climate, pollution, resources), social (working conditions, human rights) and governance (ethics, sustainable strategy) topics.

The data must be verified by an external auditor and included in the annual management report.

Content and indicators of non-financial reporting

Reporting must reflect the materiality of issues for the company, across the three environmental, social and governance dimensions.

Environment

• Greenhouse gas emissions (Scopes 1, 2, 3), measured through a carbon footprint
• Energy consumption and efficiency
• Resource use and recycling (water, waste)
• Impact on biodiversity

Social

• Health and safety at work
• Training and skills development
• Diversity, inclusion and pay equity
• Ethics and human rights across the supply chain

Governance

• Composition of governing bodies
• Anti-corruption and financial ethics policies
• Stakeholder dialogue
• ESG risk management

Methodology: structuring your reporting step by step

1. Take stock: identify available information, applicable frameworks (GRI, SASB, ISO 26000) and existing collection processes.
2. Run a materiality analysis: select the most relevant ESG topics based on stakeholder expectations and the company's real impact.
3. Define indicators (KPIs): set quantified, verifiable targets (e.g. 30% emissions reduction by 2030).
4. Document and audit: centralize evidence and data, then trigger internal or external verification to ensure reliability.
5. Publish and improve continuously: the report is included in the management report; stakeholder feedback feeds future editions.

Concrete examples of non-financial reporting

• Manufacturing: tracking carbon emissions across the three scopes, energy-water footprint, waste reduction and a low-carbon transition plan.
• Services: indicators on diversity, training, customer satisfaction, remote work and ethical governance.
• Retail and distribution: managing sustainable procurement and tracking supplier ESG performance through a code of conduct and CSR audits.

In every case, a clear scope, traceable data and a coherent action plan determine reporting quality.

Non-financial reporting: key takeaways