Non-financial information from Hotel Establishments towards total transparency in companies

The close of the year is approaching, so, according to the Commercial Code, company managers are required to formulate within a maximum period of three months (December 31 if not otherwise stipulated in the statutes) the annual accounts, the proposal for the application of the results and the management report, which must include, where appropriate, the statement of non-financial information.

The fact is that, more and more companies publish non-financial information through Sustainability Reports, management reports or other types of reports, making Spain a reference in terms of the disclosure of non-financial information and diversity, with a greater demand for transparency and reliability in Report of this type of data.

But what does this non-financial information consist of and how does it affect hotel groups?

Directive 2014/95/EU of the European Parliament and the Council was created with the objective of identifying risks to improve sustainability and increase the confidence of investors, consumers and society in general.

Since the entry into force of Law 11/2018, of December 28, which updated the provisions of the Royal Decree Law that transposed the above-mentioned Directive, an attempt has been made to contribute to measuring, supervising and managing the performance of companies and their impact on society.

The consolidated non-financial statement must include the information necessary to understand the evolution, results and situation of the group, and the impact of its activity with respect to environmental and social issues, human rights, the fight against corruption and bribery, as well as those relating to personnel, including the measures that, if any, have been adopted to promote the principle of equal treatment and opportunities between women and men, non-discrimination and inclusion of people with disabilities and universal accessibility.

In this regard, for example, with regard to environmental issues, this state must include detailed information on the current and foreseeable effects of the activities of hotel groups on the environment, and where appropriate, health and safety, the use of renewable and/or non-renewable energy, greenhouse gas emissions, water consumption and air pollution. All of them, aspects to consider, depending on where the group's hotels are located.

With regard to social and personnel issues, the information provided in the state may refer to measures taken to guarantee gender equality, the application of fundamental conventions of the International Labour Organization, working conditions, social dialogue, respect for the right of workers to be informed and consulted, respect for trade union rights, health and safety in the workplace and dialogue with local communities and measures taken to ensure protection and development of those communities.

Essential information, since the work of hotel workers reflects the treatment offered to them as a worker, which is why it will ultimately affect the data provided in the management report.

The same applies to the information that must be reported regarding human rights, the non-financial information statement may include information on the prevention of human rights violations and, where appropriate, on measures to mitigate, manage and redress possible abuses committed.

Finally, with regard to the fight against corruption and bribery, the non-financial information statement will provide information on existing instruments to combat them, that is, for example, the figure of criminal compliance, incorporated into its structure directly, or through the hiring of specialized companies.

Non-financial information must be reported by companies that meet the following requirements:

55. That the average number of workers employed by the group's companies during the financial year is greater than 55.
56. That either are considered Public Interest Entities, or, or for two years, meet two of the following circumstances:
57. That the total number of asset items exceeds 20 million euros.
58. That the net amount of the annual turnover exceeds 40 million euros.
59. That the average number of workers during the financial year is greater than 250.

As established by the Act, the information provided must be verified by an independent provider of verification services or KPI. With this, evidence is obtained that the non-financial information statement is free of any error, providing credibility and of course reliability.

Once this non-financial statement is submitted, through the management report, it must be subject to the same approval, deposit and publication criteria as the annual accounts.

This measure, in compliance with Spanish and European regulations, contributes to greater transparency in remuneration matters and promotes equality, inclusion and non-discrimination, and is therefore more than essential, for the transition to a sustainable global economy that is profitable in the long term and achieves harmony with social justice and environmental protection.

Pilar Mata (T&L Attorney)

Article published in the December edition From the monthly newspaper CEHAT