Italy Seeks Feedback on New Sustainability Reporting
The Italian Ministry of Economy and Finance (MEF) is seeking public feedback on a draft decree that will bring European Union (EU) rules on corporate sustainability reporting (CSRD) into Italian law.
The CSRD aims to make companies more transparent by requiring them to disclose how their activities impact the environment, society, and their own governance. This information is valuable to investors, consumers, and other stakeholders.
The EU law requires countries to adopt these rules by July 2024. Italy's draft decree, released on February 16th, 2024, outlines how this will be done.
Who needs to report?
The draft decree expands the scope of companies required to report, including:
- All large companies and parent companies of large groups, even if they are not listed on a stock exchange. This includes banks and insurance companies.
- Smaller and medium-sized companies that are listed on stock exchanges (excluding micro-businesses).
- Third-country companies (subject to certain requirements).
What needs to be reported?
Companies will need to use common European standards (ESRS) to prepare their sustainability reports. These reports should clearly show how the company's actions affect sustainability issues and how sustainability affects the company itself.
The details
The draft decree lays out the minimum information companies need to report, how their reports will be checked for accuracy, who will oversee the process, potential penalties for non-compliance, and how the rules will be phased in over time.
Get involved
The public consultation is open until March 18th, 2024 (link available in Italian only). Your feedback can help shape how Italy implements these important new reporting requirements.
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Source: Hogan Lovells
