Italy Transposes the Sustainability Reporting Directive into domestic law
The Italian Council of Ministers on August 30, 2024, transposed into domestic law the Corporate Sustainability Reporting Directive (CSRD), n. 2464/2022/EU, on sustainability reporting, extending the obligation for non-financial reporting to Small and Medium Enterprises (SMEs).
Specifically, the CSRD introduces the requirement for companies to report information on their impacts, risks, and opportunities related to environmental, social, and governance issues, according to a double materiality approach. This will be referred to as “Corporate Sustainability Reporting” rather than “Non-Financial Statement.” In 2025, the first year of application of the Directive, all companies and groups of companies, listed and unlisted, banks, and insurance companies that exceed at least two of the following size limits will be involved:
· 250 employees
· Turnover exceeding 50 million euros
· Balance sheet assets exceeding 25 million euros
Compared to the Non-Financial Reporting Directive (NFRD), the CSRD significantly expands the reporting obligation on sustainability. It is estimated that approximately 49,000 companies in Europe will be required to prepare sustainability information, 12.4% of which are based in Italy.
The legislative decree transposing the Directive will come into force on the fifteenth day following its publication in the Official Gazette.