{"id":29117,"date":"2022-02-18T11:17:34","date_gmt":"2022-02-18T10:17:34","guid":{"rendered":"https:\/\/www.laragon.es\/disclosure-of-non-financial-information-increases-complexity-in-reporting\/"},"modified":"2022-07-22T08:25:33","modified_gmt":"2022-07-22T06:25:33","slug":"disclosure-of-non-financial-information-increases-complexity-in-reporting","status":"publish","type":"post","link":"https:\/\/www.laragon.es\/en\/disclosure-of-non-financial-information-increases-complexity-in-reporting\/","title":{"rendered":"Disclosure of non-financial information increases complexity in reporting"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"29117\" class=\"elementor elementor-29117 elementor-27230\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-7130315 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"7130315\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-3eb07bc\" data-id=\"3eb07bc\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-54160e3 elementor-widget elementor-widget-heading\" data-id=\"54160e3\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.23.0 - 05-08-2024 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h1 class=\"elementor-heading-title elementor-size-default\">Disclosure of non-financial information increases complexity in reporting  <\/h1>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-2818008 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"2818008\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-6b08fc2\" data-id=\"6b08fc2\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-7688006 elementor-widget elementor-widget-text-editor\" data-id=\"7688006\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.23.0 - 05-08-2024 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p><span style=\"color: #000000;\">There is no turning back, the need to make information available to investors, shareholders, consumers, employees, etc. in a transparent and responsible manner has become a priority for the Finance and Sustainability Departments.<\/span><\/p><p><span style=\"color: #000000;\">Companies will be required to<a href=\"https:\/\/www.laragon.es\/en\/environmental-management-and-sustainability\/#software-de-reporte-no-financiero\"> disclose<\/a> environmentally<a href=\"https:\/\/www.laragon.es\/en\/environmental-management-and-sustainability\/#software-de-reporte-no-financiero\"> sustainable economic activities<\/a>, and the specification of the methodology to comply with the disclosure obligation. <a style=\"color: #000000;\" href=\"https:\/\/www.boe.es\/buscar\/doc.php?id=DOUE-L-2021-81728\" target=\"_blank\" rel=\"noopener\">COMMISSION DELEGATED REGULATION (EU) 2021\/2178<\/a>.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-9593a33 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"9593a33\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-33 elementor-top-column elementor-element elementor-element-80a154f\" data-id=\"80a154f\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-33 elementor-top-column elementor-element elementor-element-7e1e72a\" data-id=\"7e1e72a\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-8a060ed elementor-widget elementor-widget-text-editor\" data-id=\"8a060ed\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"color: #000000;\"><em>&#8220;Article 8(2) of Regulation (EU) 2020\/852 requires non-financial companies to disclose information on the proportion of turnover, investments in fixed assets and operating expenses (&#8220;key performance indicators&#8221;) of their activities related to assets or processes linked to environmentally sustainable economic activities.&#8221;<\/em><\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-33 elementor-top-column elementor-element elementor-element-5dc3a40\" data-id=\"5dc3a40\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-ff81882 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"ff81882\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-191b490\" data-id=\"191b490\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-8c66bd3 elementor-widget elementor-widget-text-editor\" data-id=\"8c66bd3\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"color: #000000;\">Furthermore, the Regulation mentions that it is necessary to ensure a uniform application of the disclosure requirements set out in Article 8(2) of Regulation (EU) 2020\/852 by non-financial companies subject to Articles 19a or 29a of Directive 2013\/34\/EU. Rules should therefore be laid down to further specify the content and presentation of the information provided for in Article 8 of Regulation (EU) 2020\/852, including the methodology for complying with such rules, with a view to enabling investors and the public to adequately assess the proportion of environmentally sustainable economic activities (&#8220;activities that conform to the taxonomy&#8221;).<\/span><\/p><p><span style=\"color: #000000;\">In view of the entry into force and implementation of the Delegated Climate Act at the end of 2021 and the material difficulties to assess in 2022 the application of this Regulation in 2022, the disclosure should be limited to certain elements and qualitative information, while the rest of the provisions would start to apply as of January 1, 2023 for non-financial companies and as of January 1, 2024 for financial companies.<\/span><\/p><p><span style=\"color: #000000;\">Non-financial companies shall disclose the information referred to in Article 8(1) and (2) of Regulation (EU) 2020\/852 as specified in the Annexes to the Regulation where the tables are shown using the templates in Annex II to this Regulation.<\/span><\/p><h2><strong>And what is the information to be disclosed for non-financial companies?<\/strong><\/h2><p><span style=\"color: #000000;\">From January 1, 2022 to December 31, 2022, non-financial companies shall only disclose the proportion of taxonomically eligible and non-taxonomically eligible economic activities in their total turnover, their investments in fixed assets, their operating expenses and the qualitative information referred to in section 1.2 of Annex I relevant to this disclosure.<\/span><\/p><p><span style=\"color: #000000;\">Key performance indicators for non-financial companies, including any accompanying information pursuant to Annexes I and II of this Regulation, shall be disclosed as of January 1, 2023.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-8f25868 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"8f25868\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-a018f53\" data-id=\"a018f53\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-64af4ba elementor-widget elementor-widget-text-editor\" data-id=\"64af4ba\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<h2><strong>And what is the content of these key indicators to be disclosed by non-financial companies?<\/strong><\/h2>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-ac09470\" data-id=\"ac09470\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1bfbae2 elementor-widget elementor-widget-text-editor\" data-id=\"1bfbae2\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<ol><li><span style=\"color: #000000;\"><strong>Key performance indicators related to sales volume<\/strong><\/span><\/li><li><span style=\"color: #000000;\"><strong>Key performance indicator related to capital expenditures (CapEx)  <\/strong><\/span><\/li><li><span style=\"color: #000000;\"><strong>Key performance indicator related to operating expenses (OpEx)<\/strong><\/span><\/li><\/ol>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-d9762f4 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"d9762f4\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-ed140ca\" data-id=\"ed140ca\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-83b9616 elementor-widget elementor-widget-text-editor\" data-id=\"83b9616\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"color: #000000;\">But these indicators should be accompanied by complementary information regarding:<\/span><\/p><ul><li><span style=\"color: #000000;\"><strong>Accounting policy<\/strong> with respect to turnover calculations, investments in fixed assets and operating expenses, in addition to other requirements included in the Regulations.<\/span><\/li><li><span style=\"color: #000000;\"><strong>Assessment of compliance with Regulation (EU) 2020\/852<\/strong> descriptions and explanations of the nature of economic activity according to the taxonomy contributes to compliance with the requirements of the Regulation.<\/span><\/li><li><span style=\"color: #000000;\"><strong>Contextual information<\/strong> non-financial companies shall explain the figures for each key performance indicator and the reasons for any changes in those figures in the reporting period.<\/span><\/li><\/ul><p><span style=\"color: #000000;\">Taxonomies, regulations, indexes&#8230; it is increasingly necessary to homogenize information so that we can all speak the same language, and there is clearly a great challenge for legislators and regulators to achieve this, and for companies to be able to do so.<\/span><\/p><p><span style=\"color: #000000;\">Many companies are working to transform themselves into &#8220;net-zero&#8221; organizations, and this requires, among other things, being transparent, involving the organization, financing the transformation, retaining talent, involving other stakeholders &#8230;<\/span><\/p><p><span style=\"color: #000000;\">There are no magic solutions, but there are actions that can help us. Digitalization is one of them that, together with good advice and knowledge of the regulations to be complied with, will allow us to better adapt to these changes in the reporting of non-financial information.<\/span><\/p><p><span style=\"color: #000000;\">From <span style=\"color: #0000ff;\">\n  <a style=\"color: #0000ff;\" href=\"https:\/\/www.laragon.es\/en\/climate-change\/\">\n    <strong>Laragon<\/strong>\n  <\/a>\n<\/span> we offer our accumulated experience in the realization of this type of projects since 2007 with the latest technology from our partners.<\/span><\/p><p><span style=\"color: #000000;\">We create joint teams with your teams and advisors to ensure that the transparency and quality of information disclosure meets the expectations of your stakeholders.<\/span><\/p><h3><strong>About Laragon<\/strong><\/h3><p><span style=\"color: #000000;\">We are a consulting firm based in Spain and Latin America specialized in process digitalization projects and we want to bring technology to the reach of organizations. Since 2006 we have been applying Innovative Technologies to improve key Business Processes in Sustainability Strategies: Environmental Management and Sustainability, Health and Safety, Risk Management and Regulatory Compliance. To learn more about Laragon, feel free to browse our website or send us an email at<span style=\"color: #0000ff;\"> <strong><span style=\"color: #000000;\">info@laragon.es.<\/span><\/strong><\/span><\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-8db59fe elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"8db59fe\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-d3cb18a\" data-id=\"d3cb18a\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-503cb01 elementor-widget elementor-widget-image\" data-id=\"503cb01\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.23.0 - 05-08-2024 *\/\n.elementor-widget-image{text-align:center}.elementor-widget-image a{display:inline-block}.elementor-widget-image a img[src$=\".svg\"]{width:48px}.elementor-widget-image img{vertical-align:middle;display:inline-block}<\/style>\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"199\" src=\"https:\/\/www.laragon.es\/wp-content\/uploads\/2021\/10\/15-anos-web-1024x199.jpg\" class=\"attachment-large size-large wp-image-26870\" alt=\"\" srcset=\"https:\/\/www.laragon.es\/wp-content\/uploads\/2021\/10\/15-anos-web-1024x199.jpg 1024w, https:\/\/www.laragon.es\/wp-content\/uploads\/2021\/10\/15-anos-web-300x58.jpg 300w, https:\/\/www.laragon.es\/wp-content\/uploads\/2021\/10\/15-anos-web-768x149.jpg 768w, https:\/\/www.laragon.es\/wp-content\/uploads\/2021\/10\/15-anos-web-18x3.jpg 18w, https:\/\/www.laragon.es\/wp-content\/uploads\/2021\/10\/15-anos-web.jpg 1401w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Disclosure of non-financial information increases complexity in reporting There is no turning back, the need to make information available to investors, shareholders, consumers, employees, etc. in a transparent and responsible manner has become a priority for the Finance and Sustainability Departments. Companies will be required to disclose environmentally sustainable economic activities, and the specification of &#8230; <a title=\"Disclosure of non-financial information increases complexity in reporting\" class=\"read-more\" href=\"https:\/\/www.laragon.es\/en\/disclosure-of-non-financial-information-increases-complexity-in-reporting\/\" aria-label=\"More on Disclosure of non-financial information increases complexity in reporting\">Leer m\u00e1s<\/a><\/p>\n","protected":false},"author":7,"featured_media":28967,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[156],"tags":[157],"class_list":["post-29117","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-esg","tag-esgdigitalization-asg-esg-esg-climatechange-sustainableeconomy"],"_links":{"self":[{"href":"https:\/\/www.laragon.es\/en\/wp-json\/wp\/v2\/posts\/29117"}],"collection":[{"href":"https:\/\/www.laragon.es\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.laragon.es\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.laragon.es\/en\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.laragon.es\/en\/wp-json\/wp\/v2\/comments?post=29117"}],"version-history":[{"count":0,"href":"https:\/\/www.laragon.es\/en\/wp-json\/wp\/v2\/posts\/29117\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.laragon.es\/en\/wp-json\/wp\/v2\/media\/28967"}],"wp:attachment":[{"href":"https:\/\/www.laragon.es\/en\/wp-json\/wp\/v2\/media?parent=29117"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.laragon.es\/en\/wp-json\/wp\/v2\/categories?post=29117"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.laragon.es\/en\/wp-json\/wp\/v2\/tags?post=29117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}