FINANCIAL COMMUNICATION: FRAMEWORK AND PRACTICES - 2019 EDITION

60 while also ensuring its pertinence, which may require them to make messages more concise and select appropriate indicators 97 . The AMF encourages the practice, developed by certain companies, of ranking sustainable development issues based on strategic priorities and stakeholder expectations (particularly through materiality studies), insofar as it renders the information more pertinent and, thereby, contributes to the proper application of the “comply or explain” principle through more detailed explanations. The AMF also recommends, as part of the implementation of materiality studies, ensuring total transparency regarding the methodology used and the results of the analysis of labour-related, social and environmental impacts of the company’s activities, so as not to emphasise only the issues that are financially material for its own business. The non-financial performance statement is presented in a dedicated section of the management report, but companies can also use all or part of this information in other financial communication materials (registration document/URD, annual financial report, website, etc.). In this case, the AMF recommends that companies ensure that the non-financial information is consistent across the different communications, for example using cross-reference tables and references to the website 98 . The statement must be made available to the public and easily accessible on the company’s website for a five-year period, within eight months following the year-end 99 . The information contained in the statement must be verified by an independent third-party body, whose opinion is then made known to the shareholders, in companies whose (i) total assets and liabilities or net sales exceed € 100 million and (ii) number of employees is more than 500, whether or not the company’s securities are traded on a regulated market. The independent third-party body’s report must include (i) an opinion as to the statement’s compliance with article R. 225-105 and the fairness of the information provided, and (ii) the procedures implemented by the independent third-party body to carry out its audit engagement 100 . Duty of care plan of parent companies and contractors Since the entry into force of French Law no. 2017-399 of March 27, 2017 on the duty of care incumbent on parent companies and contractors, companies falling within the scope of the new article L. 225-102-4 of the French Commercial Code are required to draw up, implement and publish a duty of care plan (see below for more details) along with a report on the implementation of this plan. These two documents are made public, and are included in the management report referred to in article L. 225-100, paragraph 2, of the French Commercial Code. This article concerns any company which, at the end of two consecutive financial periods, (i) employs at least 5,000 people within the company itself and within its direct or indirect subsidiaries and has its registered office in France, or (ii) employs at least 10,000 people within the company itself and within its direct or indirect subsidiaries and has its registered office in France or in another country. 97 – AMF Recommendation DOC-2018-12, Annual financial report – 2018 Financial statements and review of the 2016-2017 financial statements, October 29, 2018, recalling a recommendation from the AMF report on social, societal and environmental responsibility, November 2016. 98 – AMF Position/ Recommendation no. 2016-05 – Guide to periodic disclosures by listed companies (section 8.4), updated on March 6, 2019. 99 – Article R. 225-105-1, III of the French Commercial Code. 100 – Article R. 225-105-2 of the French Commercial Code.