The Non-Financial Reporting Directive (NFRD) is a piece of EU legislation that requires large companies to disclose information regarding (1) environmental impact, (2) social and employee issues, (3) human rights, and (4) bribery and corruption. With respect to environmental impact, it is recommended that they disclose scope 1, 2, and 3 emissions, as well as absolute reduction targets. It is recommended that banks and insurance companies focus on their scope 3 emissions, despite the difficulties in measuring this category. The NFRD is set to be replaced by the CSRD.

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