Proposal for a Decree Implementing the CSRD

In December 2022, the European Commission published the Corporate Sustainability Reporting Directive (CSRD), which restructured the Sustainability Reporting obligation for companies operating in the EU. As per usual for the implementation of European directives, individual member states have been allowed to determine the specifics of the obligation for companies operating on national territory through the issuing of domestic implementing regulations in compliance with the target constraints set by the directive. The CSRD grants many liberties to national governments, sometimes allowing the choice between several defined alternatives and others conceding wide freedom in imposing further obligations or requirements.

In Italy, European directives are usually implemented by decree, and this time as well the Government intends to proceed through this known procedure, although by a particular operational method. On 16 February the Ministry of the Treasury published on its official website a consultation document on the proposed decree implementing the CSRD, drawn up by the Treasury Department and the State General Accounting Office following an exchange with the technical bodies of the authorities involved, thus inviting the public to send in their comments by March 18th.

The tool of public consultation is a clever instrument that allows and encourages the active participation of citizens, associations, and guilds in the government’s decision-making process, and in this particular case it can prove to be of inestimable value given the novelty and complexity of the object of the legislation. In fact, however thoughtful and informed the decision of the legislative body may be, it’s unlikely that it will be able to grasp all the complexities, pragmatic implications, and necessities of legislation inspired by such recently introduced concepts and ideas (just think of the concept of double-materiality, at the heart of the Sustainability Reporting obligation and still unknown to many businesses) without the assistance of experts in the field.

The government’s appeal did not go unanswered, and several suggestions were forwarded to the Ministry. These will be carefully examined in the coming months, keeping in mind the deadline imposed by the CSRD (Art.5, Transposition), according to which the implementation of the legislation by the member states must take place by 6 July 2024.

Sitography

Public Consultation
https://www.dt.mef.gov.it/it/dipartimento/consultazioni_pubbliche/direttiva_20222464UE.html