NRE Law requiring Firms’ environmental and social reporting

The "Nouvelles Régulations Economiques" law (NRE), article 116, sets reporting requirements on three areas within sustainable development: human resources, community involvement and environmental impacts.

Table below summarizes Section 116’s reporting requirements:

Topic	Suggested Quantitative Reporting	Suggested Qualitative Reporting
Human Resources
Employment	Total employees	--
	Hires during the year	Details on recruiting process
	Short-term employees	Analysis and rationale
	Lay-offs	Analysis and rationale
	Contract employees	Analysis and rationale
	--	Outsourcing/subcontracting
	Efforts to mitigate effects of corporate restructuring	--
Work Organization	Amount of overtime	Analysis and rationale
	Work schedules	--
	Absenteeism	Analysis and rationale
Compensation	History of pay rates	--
Compensation	Payroll taxes	--
Social benefits	--	Details
Equal opportunities	Integration of women into different posts	Details/analysis
Equal opportunities	--	Integration of physically challenged into workforce
Health & Safety	--	Health and safety conditions
Health & Safety	--	Details of incidents and accidents
Training		Details
Community Involvement
Local Impacts	--	Integration into the local community
Local Partnerships	--	Contacts with environmental NGOs, consumer groups, educational institutions and impacted populations
Work conventions	--	Extent to which ILO core labor conventions are followed by the firm’s subsidiaries
Work conventions	--	Extent to which the firm encourages its subcontractors to comply with ILO core conventions
Local development in foreign countries	--	--
Environment
Resource Consumption	Water	--
	Energy	Use of renewable energy
	--	Initiatives for energy efficiency
	Raw materials/natural resources	--
	Land use	--
Emissions	Air, water, land, odor, noise, waste	--
Impact on biodiversity	--	Programs to reduce impacts
Impact on biodiversity	--	Programs to promote fauna and flora
Environmental Management	--	Audit and certification policy
	--	Compliance with environmental laws and regulations
	Expenditures	--
	--	Environmental management structures and organization
	--	Employee awareness and training programs
	--	Environmental risk management
	Provisions for environmental risks	--
	Penalties	--
	--	Integration of foreign subsidiaries within environmental management system

Some of the reporting elements listed in this table were incorporated in internal reports called "bilans sociaux" presented to the Works Council. The scope of elements to be reported in compliance of the NRE law is much wider, integrating in particular last item above: integration of foreign subsidiaries in the report, as well as integration of actions towards subcontractors and vendors to apply the same rules as the firm.

Mandating that the information be incorporated in firms’ annual reports makes it publicly available to all parties.

Prior to the firm’s annual stockholders’ meeting, the NRE report must be shared with the firm’s Works Council, which has the right to make comments to shareholders.

Since the NRE was passed in 2001, reports have to be presented since 2002 only. Although this reporting is mandatory, no NRE report has been presented yet (July 2004) to the Works Council or published by TECHNIP for 2002 or 2003.

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