Legislative decree no. 125 of 6 September 2024 implementing Directive 2022/2464/EU (CSRD)

On September 10, 2024, legislative decree no. 125 of September 6, 2024 (hereinafter referred to as the "Decree") implementing Directive 2022/2464/EU, known as the Corporate Sustainability Reporting Directive or CSRD, on sustainability reporting.

Below is a summary of the main innovations for companies.

MAIN INNOVATIONS

CSRD - amending Regulation (EU) No. 537/2014, Directive 2004/109/EC, Directive 2006/43/EC and Directive 2013/34/EU – introduces significant changes to corporate sustainability reporting and aims to promote corporate environmental, social and governance (ESG) transparency impacts of their activities by strengthening annual reporting obligations. The decree implementing the CSRD will replace legislative decree no. 254 of December 30, 2016, which implemented Directive (EU) no. 2014/95 on the non-financial statement ("NFS"). Below are the main innovations resulting from the application of the decree:

• expansion of the entities subject to the reporting obligation;
• expanding the scope of sustainability communication, which must include information on sustainability and any negative impacts not only in relation to the company's activities, but also in relation to its value chain upwards and downwards;
• double significance approach;
• harmonization of reporting criteria through the use of common standards (European Sustainability Reporting Standards or ESRS);
• certification of conformity of the data presented in the sustainability report;
• inclusion of sustainability information in the management report;
• digitization of communication.

(Melania Mazzonová, more at lexology.com)