Orgalime comments on the guidance document on the Non-Financial Reporting (NFR) Directive

Following the European Commission’s publication of a draft guidance document on the Non-Financial Reporting Directive, Orgalime has responded to outline a number of concerns regarding the aspect of conflict minerals and related Specific Key Performance Indicators (SKPIs).

Firstly, the guidelines on conflict minerals do not reference and/or establish a link to the draft Regulation on a “Union system for supply chain due diligence self-certification of responsible importers of tin, tantalum and tungsten, their ores, and gold originating in conflict-affected and high-risk areas”. The proposed Regulation follows a voluntary approach for the downstream industry, aiming to encourage due diligence reporting and the possibility to register in an envisaged transparency database. As the guidelines are envisaged to be non-legally binding, we believe this spirit of encouragement rather than expectation should be reflected in the text of Section F.

Furthermore, the guidelines do not highlight the stipulated transition period of the draft Regulation, which will only be fully applied in 2021. In addition, it needs to be ensured that the SKPIs are in line with the requirements of the OECD Due Diligence Guidance and are clearly formulated.

Orgalime therefore calls on the Commission’s DG FISMA to revise the draft guidance fiches with the aim to fully reflect the provisions of the draft Regulation.