Green in comparison, Italian reports are the most verbose in the EU

More than 140 pages against a European average of 111. The new sustainability statements of Italian listed companies are the longest in Europe. This emerges from the study carried out by the Observatory on the new reports complying with the EU CSRD regulation and drafted with the new reporting principles (Esrs). The monitoring structure was set up by the Venice School of management of Ca' Foscari university and Bdo Italia. The Observatory analysed in particular the green reports of 131 Italian companies listed in Milan and 159 European companies included in the Stoxx Europe 600: in particular, these companies are based in EU countries that have already implemented the CSRD directive and are Belgium, Denmark, Finland, France, Poland and Sweden.

Sustainability statements that are too long then. Consequence? "The large amount of data risks compromising the effectiveness of the reports," the Observatory report explains, "making them less focused, redundant and dispersive, endorsing the current attempts to simplify the Esrs". Greater synthesis would therefore be desirable. The researchers also point to the extensive use of the exemptions granted by the legislation in the current transitional phase. "On average," the document states, "five information requirements have been omitted, with omission rates close to 100% for information on the expected financial effects of sustainability risks". Furthermore, apart from a few exceptions, few companies "have provided a quantification of the expected financial effects of sustainability-related risks and opportunities".

Two elements are the most highlighted in the sustainability declarations, namely indications on employees and climate change. In the first case, working conditions and equal opportunities are highlighted above all. On the climate side, there is ample space for the concepts of mitigation and adaptation and energy use. Despite the awareness of climate change, 'mitigation efforts are limited, especially for Italian companies,' it is explained. 'Only 24% declared the formal adoption of a climate transition plan, compared to 76% of European companies,' it is stated. 'Even in the definition of climate targets, Italy appears to be further behind its European counterparts: only 7% of Italians have a Net-Zero target validated by the Science Based Target Initiative (compared to 27% of Europeans). Finally, just 19% of the Italian companies monitored have obtained validation of short-term targets, compared to 69% of European companies.

Notwithstanding the anti-green currents in the USA, there is a need to move faster on the Italian side, even though the amount of EU regulations and the great confusion on the subject in Brussels does not help companies very much. With this research we want to provide a relevant contribution not only to companies and their stakeholders, but also to standard setters and policymakers, who are committed to making the rules clearer," said Chiara Mio, director of the Sustainability Lab at the Venice School of Management. The question for a company to ask itself," commented Valeria Fazio, partner Sustainable Innovation Bdo Italia, "is how right it is to approach CSRD as a mere compliance exercise or to invest in sustainability as a tool to interpret changes in the external context and translate them into innovation.