Path Evolution on Gender Reporting. Early Reflections

This study analyses how the issue of gender equality is addressed by the two main European directives on sustainability disclosure: Directive 2022/2464 on Corporate Sustainability Reporting (CSRD) and Directive 2014/95 on Non-Financial Information (NFID), amended by the CSRD including with regard to gender disclosure. Based on a comparison of the texts of the two Directives, this paper investigates the factors influencing the renewal of gender information disclosure. The analyses highlight a significant increase in the obligations to disclose information on gender equality in the CSRD, in line with the principle of equal treatment between women and men that inspired European legislation. Furthermore, the CSRD requirements are consistent with the Pay Transparency Directive, which aims to strengthen the application of the principle of equal pay for men and women, the prohibition of discrimination, and pay transparency mechanisms. Thus, both Directives contribute to the achievement of gender equality and the empowerment of all women in the world. The changes in reporting required by the gender equality directives can reasonably be expected to impact business processes and structures significantly. These changes are of such importance and magnitude that they may require companies to introduce specific organisational units capable of managing and measuring continuous financial flows using appropriate metrics. This article fills a gap in scholarship by highlighting an unexplored area of the literature related to changes in the quantity, quality, and modalities of regulatory gender disclosure requirements. It is the first research to examine the factors influencing the difference in gender disclosure requirements between NFID and CSRD. Finally, this is also the first work to anticipate the potential impact of ongoing regulatory changes on business structures and processes. This research has some limitations. It is a preliminary analysis. To reach more analytical conclusions, it is necessary to compare the standards adopted based on the two European Directives and wait for European companies’ first adoption of the CSRD.