Sustainability Report

To meet the demands for greater transparency from investors and consumers, the European Union – through the CSRD directive and the European Sustainability Reporting Standards (ESRS) – has made the preparation of the Sustainability Report mandatory.

The main features of the Sustainability Report are:

1. Double Materiality: companies must assess both the impact their activities have on the environment and society, and how ESG-related risks and opportunities may impact their financial performance.

2. ESRS Standards: companies must prepare the Sustainability Report according to the European Sustainability Reporting Standards (ESRS), which define the specific requirements for ESG reporting.

3. Verification obligation: the Sustainability Report must be subjected to an external verification (assurance) to guarantee the accuracy and reliability of the information provided.

4. Sustainability Plans and Objectives: the Sustainability Report must include concrete action plans and measurable targets (such as emissions reduction targets, inclusion and diversity policies and plans for managing climate risks).

5. Stakeholder Engagement: the Sustainability Report must account for how the company has been able to involve stakeholders in order to include their expectations in its strategy.

6. Standardized Reporting and KPIs: the information contained in the Sustainability Report must be presented - where possible - using standardized Key Performance Indicators (KPIs), in order to facilitate comparison between companies and sectors.

To date, the obligation to prepare the Sustainability Report concerns relevant public interest entities (listed companies, banks, insurance companies).

Starting from the 2025 financial year, the obligation will also be extended to large unlisted companies that, at the balance sheet closing date, even on a consolidated basis, have exceeded at least two of the following size criteria:

•  250 employees;
•  €25 million balance sheet;
•  €50 million net revenue.

With the support of our team, the Sustainability Report can become a strategic tool that will give you the opportunity to respond to the transparency and sustainability expectations of your stakeholders and that will help make your company an active protagonist for a more responsible economy.