Sustainability reporting is an increasingly relevant topic in the contemporary business landscape, especially in light of recent European regulations. In particular, **Legislative Decree No. 125 of September 6, 2024**, represents a significant step in the implementation of directive **2022/2464/EU**. This provision aims to strengthen transparency and accountability among companies regarding their environmental, economic, and social sustainability.

### Scope of Application

The decree primarily applies to large enterprises and publicly traded small and medium-sized enterprises (SMEs), while excluding micro-enterprises. This decision emphasizes the need to draw a clear and distinct line between different types of companies, recognizing that larger ones can have a greater impact and, thus, greater responsibility.

### New Reporting Requirements

One of the critical points of the legislative decree is represented by the requirements for consolidated reporting. These requirements concern various aspects that every company will need to consider when defining its business strategy. In particular, Article 4 of the decree establishes that the information to be reported must include:

– **Strategy and Business Model**: Companies must describe how sustainability integrates into their overall strategy and operational model.

– **Sustainability Goals**: Companies are required to establish clear and measurable sustainability goals, with specific deadlines for achieving them.

– **Governance and Incentives**: Companies must outline the governance structures dedicated to sustainability and clarify how incentives are aligned with sustainable objectives.

– **Due Diligence**: It is essential for companies to demonstrate a commitment to identifying potential risks and impacts related to their operations.

– **Risks and Dependencies**: Analyses concerning sustainability-related risks and dependencies on the external environment, such as the use of natural resources or the impact of regulations, must also be included.

### Integration of Sustainability Information into Financial Statements

In addition to the customary financial information, each financial statement will now need to contain a detailed list of impacts, risks, and opportunities related to ESG (environmental, social, and governance) issues. This implies a radical change in how corporate information is presented, emphasizing a more comprehensive assessment of business performance.

### Sustainability Goals and Emission Reduction

One of the core objectives of the decree is the reduction of greenhouse gas emissions, with deadlines set for 2030 and 2050. Companies are encouraged to base their objectives on scientific evidence, thereby making their sustainability strategies more credible and measurable. This will require not only an organizational effort but also cooperation among the various stakeholders involved in business activities.

### Value Chain and Sustainable Impacts

A crucial aspect that emerges from the decree is the importance of the value chain. Even SMEs, while not directly subject to the decree, must be aware that larger companies they collaborate with may require detailed reporting on their impacts. Consequently, businesses must assess the main negative impacts related to their activities throughout the entire value chain, including the supply chain. This represents an opportunity for companies to refocus their strategies and improve overall sustainability.

### Towards Greater Corporate Responsibility

The practice of mandatory sustainability reporting represents a significant change in how companies operate. It not only increases transparency but also fosters a corporate culture centered on social and environmental responsibility. In a context where consumers are increasingly…