DPEF: Who is concerned ? A Guide to obligations

What is the DPEF?

The Déclaration de Performance Extra-Financière (DPEF) is a mandatory report for certain large French companies, established by law in 2017. It aims to provide transparent information on companies’ environmental, social, and societal impacts, as well as their actions regarding human rights and anti-corruption measures. The DPEF is part of a regulatory framework that requires companies to integrate these non-financial criteria into their overall strategy. This declaration helps meet the expectations of investors, regulators, and other stakeholders.

What are the eligibility criteria for the DPEF?

Size criteria

The DPEF applies to companies that meet certain size criteria. Companies are required to comply if they have more than 500 employees and generate revenue exceeding €100 million or have a total balance sheet exceeding €100 million.

These criteria aim to target large companies that have a significant impact on the environment and society. Companies that meet these conditions are required to publish a DPEF annually in their management report, detailing their non-financial performance and sustainability commitments.

Public and private companies

The Déclaration de Performance Extra-Financière applies to both publicly traded and privately held companies. Publicly traded companies are automatically subject to this obligation due to their public visibility and the importance of transparency for investors.

Privately held companies are also subject to the DPEF if they meet the size criteria defined by law, specifically having more than 500 employees and a turnover or balance sheet exceeding €100 million. Regardless of their listing status, these companies must include detailed information on their environmental, social, and societal impacts in their annual report.

Affected industry sectors

The Déclaration de Performance Extra-Financière applies to various industry sectors, particularly those with a significant impact on the environment and society. The industrial, energy, transport, and finance sectors are particularly concerned due to their contribution to greenhouse gas emissions, resource exploitation, and social issues.

However, any company meeting the size and impact criteria, regardless of its sector, must comply with the DPEF. This obligation aims to encourage transparency and promote more sustainable practices across different sectors of the economy.

Types of companies subject to DPEF obligations

Large companies

Large companies are the primary entities subject to the DPEF. These companies, which have more than 500 employees and generate revenue or a total balance sheet exceeding €100 million, must include a Déclaration de Performance Extra-Financière in their annual management report.

This report must detail their environmental, social, and societal impacts, as well as their actions regarding human rights and anti-corruption measures. The goal is to enhance transparency and encourage these large entities to adopt more sustainable and responsible practices.

SMEs and subsidiaries

SMEs and subsidiaries are generally not required to produce a DPEF unless they meet the size criteria applicable to large companies or belong to a group that must publish a consolidated DPEF. In such cases, subsidiaries may be included in the parent company’s reporting scope.

For SMEs, although the DPEF is not mandatory, those engaged in sustainability initiatives or looking to attract responsible investors may choose to voluntarily publish a Déclaration de Performance Extra-Financière to demonstrate their commitment to social responsibility.

Multinational companies

Multinational companies operating in France are also subject to the DPEF if they meet the size criteria defined by law, even if their headquarters are abroad. These companies must include a Déclaration de Performance Extra-Financière in their management report, covering all of their activities, including those conducted internationally. This ensures transparency regarding their environmental, social, and societal impacts on a global scale. By incorporating the DPEF into their reporting strategy, multinationals strengthen their commitment to sustainability and meet the expectations of stakeholders in European markets.