More and more companies are publishing a non-financial report each year, also known as a “sustainability report”. There are several reasons for this: legal restrictions with the emergence of new obligations for companies (such as the CSRD), the demand for transparency and accountability from companies in their environmental, social and governance management, pressure from stakeholders, and more. The EINF was created to respond to these demands with the aim of showing the results of their corporate social responsibility policy.
EINF: What is it?
The EINF is an annex to the company's management report. This document compiles information relating to the organisation's approach to corporate social responsibility, and therefore its environmental and social impact, as well as its mode of governance.
Requires companies to publish an annual report on their activities, verified by an independent external body.
The EINF shares information on social, corporate and environmental aspects related to the organisation's activities. It also specifies the policies implemented to manage the risks identified in these areas.
The report is aimed at all of the company's stakeholders, from customers to suppliers, including business partners and investors.
This document has become a cornerstone of a company's corporate social responsibility policy.
How is it made?
To prepare an EINF report (Non-Financial Information Statement), the company's departments are analysed and the necessary data is collected. The aim is to present clear and relevant information to stakeholders.
Steps for preparing an EINF
- Analyse the company and determine the KPIs.
- Collect the necessary data
- Write the report in a manner that is accessible to all stakeholders.
- Verify the information by an independent verification service provider.
- Use the content of the report as a starting point for the next one.
Here you can see our success story from EINF report with the multinational Kronospan.
EINF report requirements
EINF reports require mandatory content that includes detailed information on:
- Environmental impact: Organisations report on their environmental impact, including their carbon dioxide emissions, carbon footprint, resource consumption, renewable energy use, waste and circular economy.
- Social and personnel matters: report on working conditions, gender equality, diversity, work-life balance, health, safety, inclusion and staff development.
- Human rights: how they identify and address human rights risks in their operations to prevent abuses in the supply chain; report on ensuring ethical practices.
- Corruption and bribery: policies and controls adopted to prevent corruption and bribery in all areas of the company.
- Governance: how the company integrates ethical considerations into its governance structure and decision-making processes, as well as oversight mechanisms.
Format and presentation
- Included in the management report or as a separate document.
- External verification by an independent auditor or entity.
- Mandatory publication on the company's website within six months of the end of the financial year.
With the CSRD, the requirements will become even stricter, with more detailed standards and the obligation to digitise information.
Why is an EINF report necessary?
In addition to the need to comply with regulatory requirements, this report expands on information about aspects not reflected in financial indicators but which have a direct impact on the value of the company.
However, beyond regulatory aspects, this document offers many advantages for organisations by providing a more comprehensive view of risk, helping investors and consumers in their decision-making.
The overall performance of these organisations can no longer be assessed solely on the basis of financial and economic indicators. Their performance must also be assessed in relation to so-called extra-financial criteria, those related to the company's environmental, social and corporate actions. To this end, a document has been created to facilitate communication on this subject to the company's stakeholders: the EINF.
The document brings greater transparency to the approach to social responsibility. In fact, the company will be able to offer greater clarity and confidence to its stakeholders in terms of CSR (employees, shareholders, customers, suppliers, local community, etc.). In general terms, it is a highly effective communication tool, both internally (aimed at employees or future employees) and externally (to attract and retain new customers).
From a strategic and operational point of view, it enables the company to take stock of its CSR approach and governance. This makes it easier to identify areas for improvement through concrete actions. The EINF allows companies to clearly measure their results, analyse their impact on the organisation's activities and reorient their strategy if necessary.
What are the EINF limits?
The EINF has a defined scope: not all companies are required to submit it. Only those that meet certain requirements in terms of size, turnover and number of employees are required to prepare it, which excludes many SMEs with a significant impact.
Furthermore, although its content is regulated, there are differences in its application depending on each country, especially while the CSRD Directive is still in the process of transposition. This can lead to inconsistencies in the information reported and make it difficult to compare companies and sectors.
With regard to your obligations and requirements, The EINF must include data on sustainability, human rights, diversity and anti-corruption, but the level of detail varies depending on the company.
Some only meet the minimum requirements, while others go further and provide more comprehensive information.
However, the lack of uniform criteria can result in reports that are difficult to compare or contain information that is difficult to verify. Furthermore, preparing these reports involves an administrative and financial effort that not all companies are prepared to undertake.
What are the obligations of this report?
The Non-Financial Information Statement (EINF) has several obligations that companies must comply with to ensure transparency in their environmental, social and governance (ESG) impact. These obligations are currently regulated by the Act 11/2018, but they will evolve with the transposition of the CSRD Directive.
Which companies must submit this report?
Non-financial reporting is a legal obligation for a certain number of companies.
Those that are Public Interest Entities (PIEs) are required to do so, with the exception of companies that are considered small and medium-sized enterprises, or if, during two consecutive financial years to the closing date of each of them, they meet at least one of the following conditions:
- Companies with more than 250 employees.
- To generate more than 40 million euros in revenue.
- Have assets exceeding €20 million.
Those with fewer than 250 employees also have the option of creating one, as it is a corporate communication tool with a very positive impact.
In all cases where there is an obligation to submit the report, it must be approved at a shareholders' meeting and audited by an external verification agency before publication. In addition, it must be made available to the public free of charge on the company's website.
Examples of EINF reports
To submit a comprehensive non-financial report, companies must mention the business model, risks, associated indicators and scope, as well as due diligence policies for the following four categories of information:
What information should it include? The EINF must detail the company's impact and policies in areas such as:
- Environment: carbon dioxide emissions, resource consumption, waste and sustainability measures.
- Social and labour issues: working conditions, gender equality, training and occupational safety.
- Human rights: policies and measures to prevent violations in the supply chain.
- Fight against corruption: internal controls, anti-corruption and bribery measures.
- Governance: management structure, business ethics and supervisory systems.
How should you introduce yourself? It must be included in the management report or in a separate document.
- Requires external verification by an independent auditor or entity.
- It must be published on the company's website within a maximum period of six months after the end of the financial year.
Conclusions
Non-financial reporting is now part of the routine for many companies. Far from being merely a regulatory requirement, EINF brings real value to the organisation.
It improves access to financing, strengthens stakeholder confidence and opens doors in the market, especially with multinationals that already require it from their suppliers. Furthermore, in a world where investment follows ESG criteria, having a solid EINF is a key competitive advantage.
Due to the complexity this may entail for some companies, it is advisable to start working on the report well in advance. Given the amount of information that must be gathered, the development of content, and the editing of the document, it is advisable to allow sufficient time for external verification.
Gesvalt has a division dedicated to sustainability., with services linked to green financing or certifications, the sale of real estate company assets, environmental studies or new regulatory requirements, and is aimed at meeting the needs of companies and administrations that need to certify their activity as sustainable.