Working with businesses – 5 things you need to know about the NFRD

Working in partnership with large, recognised businesses can offer a vast range of opportunities for your organisation and your young beneficiaries.

That is why being familiar with the Non – Financial Reporting Directive (NFRD) might be crucial to your employer engagement plans.

Close-up of business group analyzing financial papers for the certain period

In line with the requirement of companies taking responsibility for their impact on society, the Non – Financial Reporting Directive (NFRD) requires corporates to include a Non-Financial Information Statement (NFIS) in their annual strategic report. Under the new UK regulations, NFRD reporting is compulsory for companies with more than 500 employees which are:

  • traded companies
  • banking companies
  • authorised insurance companies, or
  • companies carrying on insurance
  • market activities

The NFIS must give an understanding of the company’s development and impact by providing information on the following:

  • environmental matters
  • the company’s employees
  • social matters
  • respect for human rights,
  • and anti-corruption and anti-bribery matters

Social matters, among many other topics, include dialogue with local communities and the actions taken to ensure the protection and the development of those communities.

The are the two crucial aspects for social entrepreneurs, youth and educational organisations.

The requirements will apply to annual reports for years starting on or after 1 January 2017 which means that corporates are now planning their responses for the 2018 reporting cycle.

The European Commission’s Impact Assessment estimates that 2,500 companies in the EU currently prepare a non-financial report and that this will be increased to around 18,000 by the Directive.

NFRD can help charities, youth and educational establishments to make their business case stronger.

Engaging employers requires patience, persistence, and flexibility but most importantly, it involves a change in mindset: You are not seeking charity for your beneficiaries—you are offering value-added services to employers.

In practice that means implementing how working with your beneficiaries’ can help businesses with their NFRS. For instance, instead of pitching to employers that:

“We are a charity dedicated to serving young people who experience homelessness by helping them find meaningful employment. I’m calling to help find them jobs.”

Focus your pitch on employers’ needs in relation to NFRD:

“We find high-quality, entry-level, young workers for local businesses at no charge. We also track young people’s progress to supply impact data. During the past year we’ve placed 300 young people to work at companies like yours.  How can we help you meet your community engagement goals?”

Businessman drawing a rising arrow over a colorful bar graph

NFRD can help your organisation to access support from CSR teams or get your organisation on a corporate supply chain, if implemented right within your strategy of engaging employers.