What is the DPEF ?
DPEF definition
The non-financial performance declaration (DPEF) is a mandatory report for certain large french companies, introduced by law in 2017. it aims to provide transparent information on the company’s environmental, social, and societal impacts, as well as its actions regarding human rights and anti-corruption efforts. the DPEF is part of a regulatory framework that requires companies to integrate these non-financial criteria into their overall strategy to meet the growing expectations of stakeholders and regulators.
Objectives of the DPEF
The non-financial performance declaration (DPEF) pursues several key objectives for companies:
- Enhance transparency: provide stakeholders with clear information about the company's environmental, social, and societal impacts.
- Improve risk management: identify and prevent risks related to human rights, the environment, and corruption.
- Regulatory compliance: ensure adherence to legal obligations regarding non-financial reporting.
- Promote sustainability: encourage companies to integrate sustainable practices into their overall strategy.
- Strengthen trust: build a trusting relationship with investors, customers, and other stakeholders through transparent communication.
Who is affected by the DPEF ?
The DPEF primarily applies to large French companies that meet certain size criteria. the organizations concerned are publicly traded companies, as well as privately held companies with more than 500 employees and either a turnover or a balance sheet total exceeding 100 million euros.
These companies are required to annually publish a non-financial performance declaration in their management report. the DPEF includes information on the company’s environmental and social impacts, as well as its initiatives regarding human rights and anti-corruption efforts. subsidiaries of large groups may also be subject to the non-financial performance declaration if they meet the same criteria or are included in the group’s consolidation scope.
How to prepare and draft a DPEF?
To prepare and draft a non-financial performance declaration (DPEF), companies must first define the scope of their report by identifying the activities, subsidiaries, and geographical areas to be included, taking materiality criteria into account. next, it is essential to gather the necessary data on the organization’s environmental, social, and societal impacts. collecting this data can be facilitated by using specific software like d-carbonize. this process requires close collaboration between different departments such as human resources, CSR, finance, and operations.
Once the data is collected, it must be analyzed and structured to meet the requirements of the DPEF. it is necessary to comply with applicable standards and frameworks, such as the GRI (global reporting initiative) or ISO 26000. the report should detail the company’s policies, actions, and results in terms of sustainability, ensuring clarity and coherence. finally, it is important to submit the DPEF to both internal and external audits to verify the reliability of the data and regulatory compliance before its publication in the annual report.
The benefits of the DPEF for companies
The non-financial performance declaration (DPEF) offers several benefits for companies. firstly, it enhances transparency in terms of sustainability, allowing companies to clearly communicate their environmental, social, and societal impacts. this transparency builds trust with investors, customers, and other stakeholders, which can improve the company’s reputation and brand image.
The DPEF also helps organizations better identify and manage non-financial risks, such as those related to climate change, human rights, or corruption. by integrating these elements into their overall strategy, companies can anticipate potential risks and adopt more effective preventive measures.
Moreover, the non-financial performance declaration promotes innovation and competitiveness by encouraging companies to adopt sustainable practices and develop more responsible products and services. it can also facilitate access to green or responsible financing, as more and more investors are incorporating ESG (environmental, social, governance) criteria into their investment decisions. finally, the DPEF allows companies to comply with existing regulations, thereby avoiding financial penalties and strengthening their market position.
