The Fourth Company Law Directive requires companies to include, where appropriate, informa¬ tion (key performance indicators - KPIs) relating to environmental and employee matters in their annual report to the extent necessary for an understanding of the company’s development, per¬ formance or position. Member States, however, may exempt small and medium-sized companies from this disclosure obligation.

Discuss whether it is appropriate to exempt medium-sized companies and, if so, what other information should they be also exempt from disclosing.

LO1.