The DPEF: A complete guide to the declaration of extra-financial performance

Regulatory framework and companies concerned

DPEF applies to companies exceeding certain thresholds:

• For listed companies: balance sheet total of €20 million or sales of €40 million
• For unlisted companies: balance sheet total of 100 million euros or sales of 100 million euros
• And over 500 employees

The Non-Financial Reporting Directive (NFRD) and the Corporate Sustainability Reporting Directive ( CSRD ) reinforce these obligations by extending the scope of the EPRDs of the companies concerned.

Content and structure of the DPEF

💰 Business model presentation

• Description of activities: Presentation of the company's main areas of activity, business sector and market positioning.
• Key resources: Identification of the human, financial, technological and natural resources essential to the company's operation and growth.
• Value creation: Explanation of how the company generates economic, social and environmental value through its activities and its impact on stakeholders.
• Sustainable development strategy: outlines commitments and objectives in terms of social and environmental responsibility, as well as initiatives implemented to promote sustainable growth.

📉 Extra-Financial Risk Analysis

• Identification of material issues: Identification of risks and opportunities that have a significant impact on the company's performance and sustainability, often using a CSR materiality matrix.
• Impact assessment: Analysis of the economic, social and environmental consequences of a company's activities on its stakeholders and ecosystem.
• Climate change measures: Implementation of strategies andactions to reduce carbon footprint and adapt to climate change.
• Carbon footprint: Quantification of greenhouse gas emissions generated by the company in order to identify levers for improvement and impact reduction, including scopes 1, 2 and 3.

🎯 Policies and results

The publication of information must include :

• Actions implemented
• Key performance indicators
• Results
• Future objectives

The EPFD is an essential strategic tool for companies, enabling them to structure and communicate their commitments to sustainable development. Through a detailed presentation of the business model, it offers a clear vision of activities, resources and value created, while highlighting the sustainable growth strategy adopted.

Extra-financial risk analysis enables us toanticipate and manage environmental, social and governance challenges. By identifying material issues, assessing the impact of activities and integrating concrete measures such as carbon footprint reduction, companies strengthen their ability to adapt to regulatory and societal changes.

Finally, the section dedicated to policies and results adds a measurable dimension to the company's commitment. By detailing actions taken, performance indicators and future objectives, the DPEF guarantees essential transparency for investors, customers and all stakeholders.

By structuring their approach in a rigorous and transparent way, companies not only meet a regulatory obligation, but also strengthen their competitiveness and demonstrate their commitment to a more responsible and sustainable business model.

Methodology and Implementation

The DPEF process follows several stages:

• Data collection: financial and non-financial information, quantitative and qualitative data, contributions from various departments.
• Analysis and processing: Consolidation of information, data verification, calculation of indicators such as the GHG balance.
• Writing and Validation: Report structure, internal validation, external verification.

Standards and reference systems

Several Sustainability Reporting standards enable companies to structure and communicate their commitments to social and environmental responsibility. Each standard meets specific objectives and targets different stakeholders:

• Global Reporting Initiative (GRI): The GRI is one of the most widely used reporting frameworks in the world. It provides a global framework for companies to report their environmental, social and economic impacts in a transparent and comparable way. It is particularly suited to organizations wishing to communicate with a wide range of stakeholders, including investors, NGOs and public authorities.
• SASB (Sustainability Accounting Standards Board): The SASB proposes sector-specific standards that help companies disclose the ESG information most relevant to investors and financial markets. Unlike the GRI, which covers a broad spectrum of topics, the SASB focuses on sustainability factors with a direct financial impact, depending on the business sector.
• TCFD (Task Force on Climate-related Financial Disclosures): The TCFD is a framework designed to help companies assess and disclose the risks and opportunities associated with climate change. It focuses on governance, strategy and climate risk management, with a particular emphasis on the expectations of investors and financial regulators.

Although complementary, these standards address different issues. GRI promotes global transparency on ESG performance, SASB targets investors with a sector-based financial approach, while TCFD highlights climate risks and their impact on corporate strategy. Adoption of one or more of these frameworks depends on the reporting objectives and stakeholders targeted.

📢 Communication and Publication

The EPFD must be integrated into the annual management report and include :

• A clear, accessible presentation
• Verifiable data
• A comparison with previous years
• A forward-looking vision

CSR communication plays a crucial role in disseminating and promoting this information to stakeholders.

💡 Good Practices and Recommendations

For an effective DPEF :

• Internal organization: Appoint a project manager, involve all departments, train teams
• Data collection: set up structured processes, ensure traceability, document methodologies
• Communication: Adopt a clear, precise style, focus on relevant information, illustrate with concrete examples.

🔮 Perspectives and Developments

The CSRD reporting directive strengthens requirements in terms of :

• Scope of application
• Level of information detail
• External audit
• Data digitization

The DPEF is part of an underlying trend aimed at :

• Enhancing corporate transparency
• Integrating sustainability issues
• Meeting stakeholder expectations
• Facilitating investor decision-making

Conclusion