INTRODUCTION

The Sustainability Report is a key document for companies that want to demonstrate their commitment to environmental, social and economic sustainability. In an ever-changing regulatory environment, transparency in the reporting of sustainable practices has become imperative for organisations that aim to operate ethically and responsibly. In this article, we will explore in detail what it means to draw up a Sustainability Report and which are the main regulatory standards guiding this process: the Global Reporting Initiative (GRI), the Corporate Sustainability Reporting Directive (CSRD ) and the Corporate Sustainability Due Diligence Directive (CSDD).



WHAT IS THE SUSTAINABILITY REPORT?

The Sustainability Report is a tool that allows companies to communicate their impact in terms of sustainability, going beyond traditional financial indicators. This document summarises the company's performance in the environmental, social and economic spheres, offering a complete view of its activities and their impact. Drawing up a Sustainability Report is not only a voluntary practice, but in many cases responds to increasingly stringent regulatory obligations, which require transparency and accuracy.



REGULATORY STANDARDS FOR SUSTAINABILITY REPORTING


GRI: Global Reporting Initiative

What is GRI?
The Global Reporting Initiative (GRI) is one of the most widely used global standards for sustainability reporting. Founded in 1997, the GRI provides a framework for companies to clearly and transparently report their environmental, social and economic performance.

Main features of the GRI
- Universality: it is used by companies of all sizes and sectors
- Materiality: focuses on the most relevant aspects for the company and its stakeholders
- Comparability: promotes transparency and allows for comparison between different organisations

Why choose GRI?
Adopting the GRI standard allows companies to enhance their reputation, attract investment and demonstrate their commitment to sustainability in an internationally recognised way.


CSRD: Corporate Sustainability Reporting Directive

What is CSRD?
The Corporate Sustainability Reporting Directive (CSRD) is a European regulation that replaces the Non-Financial Reporting Directive (NFRD), expanding sustainability reporting requirements for companies. This directive represents a significant step forward in harmonising ESG(Environmental / Social / Governance) reportingacross the European Union.

CSRD requirements
- Scope: applies to all large companies and listed SMEs in the EU, extending the reporting obligation to approximately 50,000 organisations
- Mandatory content: companies must report detailed information on the impact of their activities on environmental, social and governance issues
- External verification: information must be externally audited to ensure its reliability

Impact of CSRD on companies
With the implementation of CSRD, European companies are called upon to integrate sustainability into their business strategy, with the obligation to report not only on their direct operations but also those along the entire value chain.


CSDD: Corporate Sustainability Due Diligence Directive

What does the CSDD provide for?
The Corporate Sustainability Due Diligence Directive (CSDD) is a proposed European directive that aims to ensure that companies respect human rights and environmental standards throughout their value chain. This directive requires companies to take preventive measures to identify and mitigate human rights and environmental risks.

Main obligations of the CSDD
- Mandatory Due Diligence: companies must implement procedures to identify, prevent and mitigate human rights and environmental risks
- Legal liability: companies can be held liable for damages resulting from failure to take adequate measures along the value chain
- Stakeholder engagement: active involvement of all stakeholders, including workers and local communities, in risk management is required

Objectives of the CSDD
The main objective of the CSDD is to promote responsible corporate behaviour, ensuring that European companies operate in a sustainable manner and respect human rights globally.



HOW TO DRAW UP A SUSTAINABILITY REPORT IN COMPLIANCE WITH REGULATORY STANDARDS

1) Analysis and planning
Before you start drafting your Sustainability Report, it is essential to understand which regulatory standards apply to your company. A preliminary analysis will help you identify material issues and stakeholder expectations.
2) Data collection and stakeholder engagement
The collection of accurate data is crucial for the preparation of the Sustainability Report. Furthermore, it is important to involve stakeholders to ensure that the report meets their expectations and concerns.
3) Drafting and revision
Using guidelines such as those provided by GRI, companies can draw up a sustainability report that is transparent and comparable. External auditing, which is mandatory according to CSRD, ensures the accuracy of the reported information.
4) Publication and communication
Once completed, the Sustainability Report must be published and communicated through company channels. It is important that the document is easily accessible and understandable for all stakeholders.



CONCLUSION

The Sustainability Report is an essential tool for companies that want to operate in a transparent and responsible manner. With the introduction of regulations such as GRI, CSRD and CSDD, companies are called upon to raise their reporting standards and demonstrate their commitment to sustainability. Drawing up a report that complies with these standards not only enhances the company's reputation, but also creates long-term value for stakeholders and society as a whole.

Let your company take a step towards sustainability, rely on our sustainability reporting service. We at MOVESION will accompany you every step of the way, ensuring compliance with regulatory standards and transparency in communicating your commitment to a sustainable future.