Summary
Details
- Italy
The decree imposes binding obligations.
Once fully in force, companies must:
Publish sustainability reports aligned with ESRS.
Integrate double-materiality assessments.
Implement governance and data-management systems to ensure audit-ready sustainability disclosures.
Undergo independent assurance of ESG information.
Exceptions:
SMEs listed on regulated markets benefit from transitional reliefs and lighter reporting frameworks.
Non-EU parent companies may have delayed application depending on EU entry thresholds.
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What’s Required
Decree 18/2023 marks Italy’s first step in transposing the EU Corporate Sustainability Reporting Directive (CSRD).
It updates national rules to prepare large companies and groups for ESRS-aligned sustainability reporting.
Obligations include:
Expansion of the number of companies required to report sustainability information.
New governance and internal-control requirements for sustainability reporting.
Preparation for mandatory external assurance of sustainability disclosures.
Alignment with the European Sustainability Reporting Standards (ESRS).
Important Deadlines
Applies progressively from 2024–2026, depending on company size and EU thresholds.
The full ESRS application begins with financial years starting in 2025 for the largest companies.
Current Status
The decree is in force but represents only the first stage; Italy is preparing a full Business Sustainability Information Law to complete CSRD transposition.
Supervisors encourage early alignment with ESRS due to the upcoming mandatory assurance.
Penalties for Non-Compliance
Sanctions will mirror existing Italian corporate reporting penalties and will include fines for incomplete, missing, or misleading sustainability information.
Directors may incur liability for severe or repeated breaches.
Examples of Known Violations
No public violations yet, as implementation is ongoing and ESRS reporting has not fully begun.
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