What it is and when it will become mandatory
The sustainability report is the corporate tool for communicating economic, environmental and social achievements usually on an annual or biannual basis.
The sustainability report addresses all stakeholders and communicates future goals and achievements based on ESG factors (short for environmental, social and governance).
The structure of the report therefore includes:
• economic performance
• environmental performance
• social performance
Companies subject to the new CSRD directive will have to report according to the European Sustainability Reporting Standards (ESRS).
Corporate Sustainability Reporting Directive - CSRD
Adopted by the European Commission in November 2022, it builds on and replaces the Non-Financial Reporting Directive (NFRD 2014/95/EU) standard, introducing more detailed reporting requirements and increasing the number of companies that must comply.
CSRD came into effect on January 5, 2023, and companies will have to apply this new regulation starting in fiscal year 2024, for sustainability reports published in 2025.
Sustainability report: when it will become mandatory
Sustainability reporting is to date legally mandated only for listed companies and public entities, but it will become mandatory for other entities as well, according to the following steps:
- From January 1, 2024 for large public interest companies (with more than 500 employees) already subject to the Non-Financial Reporting Directive, with a deadline for data publication in 2025;
- From January 1, 2025 for large enterprises not yet subject to the non-financial reporting directive (with more than 250 employees and/or 40 Mil € in turnover and/or 20 Mil € in total assets), with a deadline for publication in 2026;
- From January 1, 2026 for SMEs and other listed companies, expiring in 2027.
The benefits of the sustainability report
Business benefits derived from writing such a document may include:
Reduction of negative environmental, social and governance impacts.
Improved reputation and increased loyalty fot the brand/organization.
Opportunities for external stakeholders to understand the company's sustainability performance.
Opportunity to concretely demonstrate how the organization contributes to the achievement of the United Nations Sustainable Development Goals (SDGs).
We draft your sustainability report
The sustainability report is based on the processing of corporate data and is informative in nature. However, it must maintain a strong communicative and visual impact to reach all corporate stakeholders. To produce reports taking care of all these aspects we can count on an established team of sustainability experts, project managers, copy writers and graphic designers.
Don't miss the opportunity to communicate your business results in an effective and innovative way.
Would you like to draft your company's sustainability report? Contact us!