04 ott 2024
The Italian government has approved changes to the legislative decree implementing the EU Directive 2022/2464 on corporate sustainability reporting.
Key updates include new thresholds for defining listed SMEs and adjustments to the sanction regime for auditing activities.
The scope of reporting obligations has been expanded to include listed SMEs with a revised employee parameter.
However, large cooperatives remain excluded from these obligations.
The decree also modifies penalties related to Consob's certification activities, capping fines for auditing firms and sustainability auditors for two years post-enactment.
The phased implementation of these provisions will begin in 2024.
Legislative Changes and New Thresholds
The Italian Council of Ministers has finalized the legislative decree to implement the EU Directive 2022/2464 on corporate sustainability reporting. This decree introduces new thresholds for defining listed small and medium-sized enterprises (SMEs) and revises the sanction regime for auditing activities. The reporting obligations now extend to listed SMEs, with the employee parameter adjusted to a range of 11 to 250 employees, compared to the previous range of 50 to 250.Definition of Listed SMEs
Listed SMEs are defined as companies with securities traded on regulated markets in Italy or the EU. These companies must meet at least two of the following criteria at the balance sheet date: a total balance sheet exceeding 450, 000 euros but less than 25 million euros, net sales and service revenues over 900, 000 euros but under 50 million euros, and an average number of employees between 11 and 250.Exclusions and Sanction Modifications
The decree does not extend reporting obligations to large cooperatives, despite recommendations from parliamentary committees. Article 2, paragraph 1, specifies the entities subject to these obligations but omits cooperative societies, which are otherwise subject to full accounting and auditing regulations under the Civil Code. The decree also revises sanctions related to Consob's certification activities. For two years following the decree's enactment, monetary penalties for auditing firms are capped at 125, 000 euros, and for sustainability auditors at 50, 000 euros. This ensures equal treatment between companies and their administrative and control bodies, and the auditors responsible for sustainability reporting.Implementation Timeline
The provisions will be phased in from 2024 to 2028. Companies already subject to non-financial reporting obligations will begin in 2024, followed by other large enterprises in 2025. Listed SMEs, small and non-complex credit institutions, and captive insurance and reinsurance companies will comply starting in 2026. By 2028, the rules will apply to branches and subsidiaries of non-EU parent companies with significant EU revenue.Further Insights
- Overview of EU Directive 2022/2464 and its impact on corporate sustainability reporting.
- Comparison of sustainability reporting obligations across different EU member states.
Potential Opportunities
- Enhanced transparency and accountability in corporate sustainability practices.
- Increased investor confidence in listed SMEs through improved reporting standards.
- Opportunities for auditing firms to expand services in sustainability reporting.