Ensure regulatory compliance with SOCOTEC: Expert advice on the preparation and presentation of EINF in accordance with Law 11/2018 on Auditing of Accounts
Nowadays, organizations have to follow a sustainable strategy to ensure business success, and consumers are increasingly demanding products and services from companies that are responsible for the different aspects. Law 11/2018 on the Audit of Accounts on non-financial information and diversity establishes the obligation for certain companies to prepare and submit an EINFS. At SOCOTEC we provide you with assistance in the preparation and presentation of your EINF, guaranteeing the regulatory compliance of your company.
El Estado de Información No financiera (EINF) es un informe anual donde las empresas exponen información relevante para todas las partes interesadas sobre su desempeño y estrategias de una organización en áreas diferentes a las financieras. Así, aporta una visión integral de la organización, dando un paso más allá de los resultados meramente económicos.
Por tanto, este documento informa de cómo actúa una empresa a lo largo de toda su actividad económica. El plazo de presentación del EINF de una empresa debe presentarse en los 3 meses siguientes a partir del cierre del ejercicio. Además, este informe debe ser verificado por una tercera parte independiente.
OVERVIEW
Which means EINF?
EINF is the abbreviation for Statement of Non-Financial Information, a document that companies are required to prepare and submit in accordance with Spain's Law 11/2018. This report broadens the perspective on an organization's performance beyond purely financial aspects, including areas such as environmental, social and corporate governance.
Law 11/2018 establishes the criteria on which companies must prepare an EINF and what type of information it must include. This report is key to providing a comprehensive view of the organization, highlighting its commitment to sustainability and social responsibility.
EINF is the abbreviation for Statement of Non-Financial Information, a document that companies are required to prepare and submit in accordance with Spain's Law 11/2018. This report broadens the perspective on an organization's performance beyond purely financial aspects, including areas such as environmental, social and corporate governance.
Law 11/2018 establishes the criteria on which companies must prepare an EINF and what type of information it must include. This report is key to providing a comprehensive view of the organization, highlighting its commitment to sustainability and social responsibility.
The EINF should provide information, fundamentally, on several key aspects. Examples:
- Environmental issues: provides detailed information on the environmental effects of business activity in terms of pollution, circular economy and waste management, sustainable use of resources, climate change and biodiversity protection.
- Social and personnel issues: covers aspects of employment, work organisation, health and safety, social relations, training, diversity and equality.
- Information on respect for human rights: implementation of procedures to prevent the risk of human rights violations
- Information related to the fight against corruption and bribery: details the measures to prevent, detect and resolve possible cases of corruption and bribery, money laundering, contributions to foundations and non-profit entities.
- Information about the Company: establishes the company's commitments to sustainable development, information on subcontracting and suppliers, consumers and on the company's tax information.
EINF Obligations to Comply with Spanish Regulations: Law 11/2018
In Spain, Law 11/2018 establishes the obligation to prepare and present the Statement of Non-Financial Information to certain companies.
At the moment, this law affects companies with more than 250 employees that meet at least one of the following circumstances for two consecutive years: the total assets of their balance sheet greater than 20 million euros or a net turnover of more than 40 million euros.
Failure to comply with the law can lead to financial penalties of up to €60,000.
However, there are some autonomous communities with their own regional laws that establish their own legislation to regulate the mandatory calculation and presentation of the EINF. This occurs in the Balearic Islands and the Valencian Community.
NON-FINANCIAL INFORMATION STATEMENTS
Relationship with the CSRD Directive
The development of EINF is closely related to the CSRD (Coroporate Sustainability Reporting Directive), which analyzes how companies should address sustainability aspects.
This directive requires companies to prepare and publish a report, on a regular basis, on activities that have a social and environmental impact.
The CSRD currently obliges companies with more than 500 workers to companies that were required by the previous regulation, the Non-Financial Reporting Directive. However, in 2025 it will be aligned with Law 11/2018 and, in 2026, it will go a step further, increasing the obligation for listed SMEs.
The development of EINF is closely related to the CSRD (Coroporate Sustainability Reporting Directive), which analyzes how companies should address sustainability aspects.
This directive requires companies to prepare and publish a report, on a regular basis, on activities that have a social and environmental impact.
The CSRD currently obliges companies with more than 500 workers to companies that were required by the previous regulation, the Non-Financial Reporting Directive. However, in 2025 it will be aligned with Law 11/2018 and, in 2026, it will go a step further, increasing the obligation for listed SMEs.
Why prepare and submit an EINF?
In addition to compliance with the law, the EINF (Statement of Non-Financial Information) brings many other advantages to an organization. First, it provides transparency into how the company manages non-financial aspects, which fosters trust with stakeholders and informed decision-making by stakeholders on business-related aspects.
On the other hand, it is a tool that promotes the continuous improvement of the company as well as a risk and opportunity management tool.
Finally, it is a report that improves the brand image and promotes the sustainability of all aspects of the company, not only environmental, but also economic and social. It is, therefore, a tool that promotes corporate Corporate Social Responsibility.
GRI Standards
There is currently no specific standard established by law for the preparation of EINF. However, at SOCOTEC we base our reports on the GRI (Global Reporting Initiative), as they are one of the most widely used standards in the world.
In addition, the GRIs are aligned with the SDGs and the standards of the global compact.
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