Companies, the obligation arrives to communicate the choices in a sustainable way

The goal is to know the strategies on the subject of sustainability by companies in the awareness that these strategies also have a non-negligible impact on the results of the financial statements. Because for example a security system advanced with cyber attacks can help avoid production blockages, as well as strategies with regard to diversity they can avert scandals with a negative impact on consumer perception.

The contents

The disclosure must first contain a description of the company’s business model and strategy which indicates the resilience to the risks associated with sustainability issues. The objectives related to sustainability issues and the progress made during the year should be indicated. A fundamental aspect will concern the governancewith the emphasis on the role played by the administration, management and control bodies on the issues eg.

Businesses will have to follow the principle of double materiality, specifying both how sustainability factors influence company development and performance, and how the activity of the single company impacts on society and the environment. To limit discretion as much as possible, they will be introduced European reporting standards, which should be ready by autumn. Environmental information will be communicated according to the criteria established byat Taxonomy Green.

Deadlines

From January 1, 2024 L’obligation will be triggered for large companies in the public interest (with more than 500 employees) already subject to the Non-Financial Disclosure Directive, with the obligation to publish the report together with the financial statements. For companies whose financial year coincides with the calendar year, the information will therefore be contained in the financial statements published in 2025. The same restriction will apply frombeginning of 2025 for large companies not yet subject to the Non-Financial Disclosure Directivei.e. those that do not
exceed the numerical limits of at least two of the following three criteria: balance sheet total of 20 million euros; net revenues from sales and services of 40 million; 250 as the average number of employees employed during the year. For companies whose financial year coincides with the calendar year, the information will therefore be contained in the financial statements published in 2026.

Finally, from 1 January 2026 the obligation for SMEs and other listed companieswith the exception of micro-entities, i.e. those that have a balance sheet of no more than 350,000 euros, revenues of up to 700,000 euros and an average of no more than ten employees.