Law 11/2018 - Non Financial Report
From its background to the consequences of not complying, here’s everything you need to know about this new law.
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Where it comes from
The obligation of some companies to present in their annual state a Non-financial report arises from the EU regulations 2014/95 directive of the European Union, which is developed by the Spanish legislator in the organic law 11/2018 of December 28th. This law came into force in January 2018 and therefore is nowadays applicable to Spanish companies that meet certain requirements.
Which companies should comply with this law
The companies that have the obligation to present the non-financial information in their anual reports are:
- Those that have more than 500 workers employed during the year.
- The entities of public interest.
And those that meet for two consecutive years at least two of the following conditions:
- Have a total assets exceeding 20 Million Euros.
- Have a total amount of turnover at least of 40 Million Euros.
- Have more than 250 workers.
What should have my Non-Financial Report
1. A brief description of the business model.
2. A description of the application in the group of policies regarding:
- Human rights.
- Environmental, social and HR.
- Anti-corruption and anti-bribery policies.
- Equality policies between men and women.
- Non-discrimination policies for people with disabilities and universal accessibility.
Also, any other significant information.
3. Finally, the result of these policies. Applying indicators that are approved by the European Union and indicators of the GRI standards.
Fines for not complying with law 11/2018
Not complying with this obligation is regulated by the capital companies law, in article 283, and establishes fines of 1,200 to 60,000 Euros and 300,000 Euros, for companies whose annual business amount exceeds six million Euros.
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