FINANCIAL COMMUNICATION: FRAMEWORK AND PRACTICES - 2019 EDITION

4 Preface Listed companies have been using the “Financial Communication: Framework and Practices” guide to assist them in their financial communication practices for several years now. An essential resource for investor relations professionals as well as for other financial communication stakeholders (agencies, advisory firms, etc.), the guide is updated each year to take into account new legal and regulatory developments. Much more than a collection of texts, it provides users with practical insight and operational responses to any questions they may have. One of the major developments currently emerging is that of non‑financial information, which companies and investors are increasingly integrating into their business strategies. This mega trend is expected to further impact the financial communication of listed companies. On the whole, the regulatory framework is strengthening reporting requirements in the areas of CSR, non-financial performance, corruption (“Sapin II” Law), and sustainable procurement and energy transition (“Duty of Care” Law). With these strengthened requirements comes a significant paradigm shift as the non-financial performance statement to be filed in 2019 for financial year 2018 must include an overview of the company’s business model, main employment‑related and environmental risks and key performance indicators, and must only focus on topics relevant to stakeholders and issuers. These regulatory requirements highlight the importance of CSR in value creation and overall business performance, and encourage companies to link financial and non-financial performance more directly. This practice, which some companies have already put into place via the publication of an integrated report, forces listed companies to rethink their communications in order to encompass a wider scope of information and provide information that is more consistent over the mid- to long-term, without losing sight of materiality, which remains an essential criterion. Robert Ophèle – Chairman of the AMF