The Sustainability Report is like a school report card for companies: it shows how good they are at caring for the planet and people. Organisations that adopt sustainable practices not only contribute positively to the environment and society, but also gain trust and prestige among investors and customers.
What is the Sustainability Report?
Sustainability Report is a corporate reporting document that communicates the environmental, social and governance performance of a company, highlighting the progress made in these areas.
Data is processed with the help of the 3 ESG criteria (Environment, Social, Governance), a set of standards for measuring sustainability.
The first criterion assesses how a company manages its environmental responsibilities; it includes aspects such as the use of natural resources, greenhouse gas emissions, waste management but also the use of energy resources.
Social criterion examines the social impact of the company, considering labour practices, human rights, diversity andinclusion, employee health and safety, and relations with local communities.
Governance criterion concerns the corporate governance structure and transparency; it includes the composition of the board of directors, remuneration policies, corporateethics, transparency in decision-making and respect for shareholders‘ rights.
Reference Standards
The 2022 Directive, known as the Corporate Sustainability Reporting Directive (CSRD), extended reporting obligations to all large companies and listed SMEs.
As of 2024, sustainability reporting becomes mandatory for all EU companies with more than 500 employees.
In Italy, all large companies with at least 250 employees and a balance sheet total of EUR 25 million or EUR 50 million net revenue will be involved from 2025.
Finally, from 2029, all subsidiaries or branches of foreign companies, including non-European companies, with net revenues exceeding EUR 150 million will also be obliged to report.
However, manysmall and medium-sized enterprises (SMEs) voluntarily choose to draw up a sustainability report to demonstrate their commitment to sustainability and improve their reputation among customers and investors.
Finally, the certification of the sustainability report is carried out by independent auditors, who assess the truthfulness and completeness of the reported data, ensuring that the information is accurate and reliable.
It should be remembered that ‘sustainability report’ and ‘sustainability report’ are not the same thing. The annual report is in fact a more comprehensive and structured version of the sustainability report.
Trends in corporate sustainability
This new analytical approach offers numerous benefits to companies, including improved reputation, attraction of investors and risk management.
Solid companies such as Enel, Moncler and Prysmian Group have successfully implemented their sustainability budgets over the years, proving that sustainability can coexist with profitability.
Companies are faced with commitments such as accurate data collection, transparency and integration of sustainability practices into business processes.
It is then important to monitor performance and set up control systems with an ongoing economic and policy commitment to these issues.
Looking to the future, trends in corporate sustainability point to an increasing role of emerging technologies and circular economic models. This will also profoundly transform managerial strategies.
Play for the planet!