{"id":5931,"date":"2024-11-14T13:14:50","date_gmt":"2024-11-14T11:14:50","guid":{"rendered":"https:\/\/aiternalex.com\/?p=5931"},"modified":"2024-11-14T13:15:18","modified_gmt":"2024-11-14T11:15:18","slug":"from-non-financial-reporting-to-sustainability-reporting-the-main-innovations-introduced-by-the-corporate-sustainability-reporting-directive","status":"publish","type":"post","link":"https:\/\/aiternalex.com\/en\/corporate-en\/from-non-financial-reporting-to-sustainability-reporting-the-main-innovations-introduced-by-the-corporate-sustainability-reporting-directive\/","title":{"rendered":"From non-financial reporting to sustainability<em> reporting<\/em>: the main innovations introduced by the<em> Corporate Sustainability Reporting Directive<\/em>"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"5931\" class=\"elementor elementor-5931 elementor-5919\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-4817103f elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"4817103f\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-447414cd\" data-id=\"447414cd\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-5e3c21ad elementor-widget elementor-widget-text-editor\" data-id=\"5e3c21ad\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.9.2 - 21-12-2022 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#818a91;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#818a91;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p><span style=\"font-weight: 400;\">Legislative Decree No. 125 of 6 September 2024 implemented the <\/span><b><i>Corporate Sustainability Reporting<\/i> Directive <\/b><span style=\"font-weight: 400;\">(Directive No. 2022\/2464 of 16 December 2022), which is part of the legal path followed by the European Union aimed at building a regulatory system that achieves sustainable development through the progressive involvement of companies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By introducing a series of obligations and duties towards businesses, the role of companies is evolving in the sense of ceasing to act exclusively as subjects with private interests and starting to deal with issues of global relevance, through the adoption of measures aimed at implementing a \u2018sustainable business\u2019 model.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With this in mind, the European legislator decided to intervene from the outset by stipulating transparency obligations for companies with respect to the pursuit of socially sustainable policies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Companies are required to make a <\/span><i><span style=\"font-weight: 400;\">disclosure <\/span><\/i><span style=\"font-weight: 400;\">about their commitment to act by adopting corporate strategies that are in line with long-term objectives and that also take into account social and environmental factors, with a view to increasing the confidence of investors and of a significant portion of civil society that demands that companies assume greater corporate social responsibility.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this sense, <\/span><b>Directive 2014\/95<\/b><span style=\"font-weight: 400;\"> required certain types of large companies to draw up a non-financial character statement, in which they should transmit \u2018at least the environmental, social, personnel, human rights, active and passive anti-corruption information to the extent necessary for an understanding of the company&#8217;s performance, its situation and the impact of its activities\u2019.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The non-financial declaration, according to the aforementioned regulatory act, had to contain indications of the policies applied with regard to the aforementioned aspects, the justification for the possible absence of such strategies, and the potential risks associated with the company&#8217;s activity with regard to the protection of the prerogatives covered by the aforementioned declaration.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this context, the <\/span><i><b>Corporate Sustainability Reporting Directive<\/b><\/i><span style=\"font-weight: 400;\"> has intervened, with the aim of attributing greater relevance and authority to the non-financial statement, as well as harmonising the disciplines of the Member States in order to make the information contained in the statement as susceptible as possible to being compared, measured and verified.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Starting with an important terminological issue, the <\/span><b>European legislator emphasises<\/b><span style=\"font-weight: 400;\"> that it is not only appropriate, but even necessary to replace the term \u2018non-financial reporting\u2019 with \u2018sustainability reporting\u2019. This is because, as explained in Recital 8, it would be misleading to assume that reporting on compliance with environmental and social policies has no financial impact. On the contrary, experience shows that investors are increasingly interested in the social and environmental impact of companies, confirming the potential impact of reporting on company profitability.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A further change of primary interest consists in the decision to compulsorily integrate the management report with sustainability reporting, in the terms described in Article 2 of Legislative Decree 125\/2024.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The CSRD has, in fact, delegated the Commission to draw up reporting principles applicable by all member states, in order to ensure that the statements provided by companies are relevant, reliable, comparable and understandable. The main objective is to improve the quality and consistency of sustainability information, thereby facilitating the assessment of ESG performance by investors and other <\/span><i><b>stakeholders<\/b><\/i><span style=\"font-weight: 400;\">. The Commission, after consultation with EFRAG, outlined the reporting principles in EU Delegated Regulation 2023\/2772.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With a view to making compliance with the <\/span><b>sustainability reporting<\/b><span style=\"font-weight: 400;\"> rules more meaningful and incisive, the 2022 Directive also introduced the obligation for Member States to provide for checks on the compliance of the information provided with the standards and further rules, by means of a reporting statement.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Although the Legislative Decree No. 254 of 30 December 2016 already -anticipating the Directive- provided for an obligation to check the compliance of the non-financial statement, Decree 125\/2024 adapted the object of the check to the provisions introduced by the European legislator.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The last innovation examined here brought about by Directive 2022\/2464 concerns the progressive expansion of the subjective sphere of companies obliged to publish a sustainability <\/span><i><span style=\"font-weight: 400;\">disclosure <\/span><\/i><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><b>As of 2026<\/b><span style=\"font-weight: 400;\">, in fact, not only large companies, but also small and medium-sized listed companies (SMEs), with the exception of \u2018micro-enterprises\u2019, will be included among the recipients of the reporting obligations. For SMEs, it was recognised that the implementation should be phased in gradually, through the provision of two facilities: the limitation of reporting to a reduced number of essential elements and the possibility of postponing full compliance until the financial year 2028.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Despite this, it is not complex to understand the important consequences that will gradually be produced by the broadening of the scope of application.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The innovations introduced by the <\/span><i><b>Corporate Sustainability Reporting<\/b><span style=\"font-weight: 400;\"> Directive<\/span><\/i><span style=\"font-weight: 400;\"> and the recent publication of the <\/span><i><span style=\"font-weight: 400;\">Corporate Sustainability Due Diligence Directive<\/span><\/i><span style=\"font-weight: 400;\">, which was approved in June 2024, show how the European Union is increasingly intent on and oriented towards reconfiguring the role of companies in a more sustainable and responsible way.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This perspective opens up numerous reflections on our model of society and <\/span><i><span style=\"font-weight: 400;\">governance<\/span><\/i><span style=\"font-weight: 400;\">, requiring the administrative body to adopt measures that realise interests that are not purely \u2018social\u2019 and to demonstrate the adoption of such measures through the transparency obligations contained in the CSRD, strengthening the<\/span><i><span style=\"font-weight: 400;\">accountability <\/span><\/i><span style=\"font-weight: 400;\">of the company.<\/span><\/p>\n<p><\/p>\n<p><span style=\"font-weight: 400;\">[ <\/span><span style=\"font-weight: 400;\">1]<\/span> <a href=\"https:\/\/www.borsaitaliana.it\/finanza-sostenibile\/materiali\/nfrd.htm\"><span style=\"font-weight: 400;\">Non-financial disclosure &#8211; Borsa Italiana<\/span><\/a><span style=\"font-weight: 400;\">; Calvosa, <\/span><i><span style=\"font-weight: 400;\">La sfida della sostenibilit\u00e0<\/span><\/i><span style=\"font-weight: 400;\">, <\/span><i><span style=\"font-weight: 400;\">Riv. dir. soc.,<\/span><\/i><span style=\"font-weight: 400;\"> 1, 2024; Rimini, <\/span><i><span style=\"font-weight: 400;\">Sostenibilit\u00e0 e nuova governance delle imprese azionarie nel diritto interno e comunitario tra realt\u00e0, criticit\u00e0 e prospettive<\/span><\/i><span style=\"font-weight: 400;\">, <\/span><i><span style=\"font-weight: 400;\">Giur. Comm.<\/span><\/i><span style=\"font-weight: 400;\">, 2024, fasc.2, 285. ; Salerno<\/span><i><span style=\"font-weight: 400;\">, Gli obblighi di \u2018attestazione\u2019 della rendicontazione di sostenibilit\u00e0 nella CSRD, Il nuovo diritto delle societ\u00e0<\/span><\/i><span style=\"font-weight: 400;\">, 2, 2024, 261; Cagnasso, <\/span><i><span style=\"font-weight: 400;\">Impresa e sostenibilit\u00e0 &#8211; Sostenibilit\u00e0 socio ambientale e sostenibilit\u00e0 finanziaria nella prospettiva delle P.M.I, Giurisprudenza Italiana,<\/span><\/i><span style=\"font-weight: 400;\"> 5, 2024, 1229.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Legislative Decree No. 125 of 6 September 2024 implemented the Corporate Sustainability Reporting Directive (Directive No. 2022\/2464 of 16 December 2022)<\/p>\n","protected":false},"author":17,"featured_media":5947,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[46],"tags":[],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/aiternalex.com\/wp-content\/uploads\/2024\/11\/Dalla-dichiarazione-non-finanziaria-al-reporting-di-sostenibilita.png","_links":{"self":[{"href":"https:\/\/aiternalex.com\/en\/wp-json\/wp\/v2\/posts\/5931"}],"collection":[{"href":"https:\/\/aiternalex.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/aiternalex.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/aiternalex.com\/en\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/aiternalex.com\/en\/wp-json\/wp\/v2\/comments?post=5931"}],"version-history":[{"count":5,"href":"https:\/\/aiternalex.com\/en\/wp-json\/wp\/v2\/posts\/5931\/revisions"}],"predecessor-version":[{"id":5938,"href":"https:\/\/aiternalex.com\/en\/wp-json\/wp\/v2\/posts\/5931\/revisions\/5938"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/aiternalex.com\/en\/wp-json\/wp\/v2\/media\/5947"}],"wp:attachment":[{"href":"https:\/\/aiternalex.com\/en\/wp-json\/wp\/v2\/media?parent=5931"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/aiternalex.com\/en\/wp-json\/wp\/v2\/categories?post=5931"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/aiternalex.com\/en\/wp-json\/wp\/v2\/tags?post=5931"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}