Insights

The Bank of Italy recently published a study examining the impact of reducing administrative burdens for micro-enterprises (the so-called "micro balance sheet") on corporate performance.

The Italian Council of Chartered Accountants and Accounting Experts (Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili, CNDCEC), together with the Italian Foundation of Accountants (Fondazione Nazionale dei Commercialisti, FNC), has recently published an operational document on methodologies for mitigating the risks associated with carbon washing practices .

Throughout 2025, significant developments occurred in the field of sustainability reporting. On one hand, the Corporate Sustainability Reporting Directive (CSRD) entered into force and was transposed into Italian law through Legislative Decree No. 125 of 6 September 2024 . In parallel, the European Commission presented the so-called " Omnibus " proposal (first package adopted in April 2025), aimed at simplifying EU sustainability reporting regulations.

The Omnibu package for the regulatory simplification of sustainability reporting takes a new step forward: on July 30, 2025, the European Commission published an official recommendation on the adoption of the Voluntary Standards for SMEs (VSME) , developed by EFRAG. These standards are addressed to entities currently outside the scope of the Corporate Sustainability Reporting Directive (CSRD), offering them a clear and accessible reporting framework.

Banca d'Italia has published a study analyzing how transition climate risk can affect businesses' credit risk. Specifically, the analysis was conducted using companies' carbon emissions and the Expected Default Frequencies (EDFs) estimated by Moody's for 1308 companies, from 2008 to 2022.

In recent years, the issue of business crisis has taken on an increasingly central role, both from a regulatory and operational standpoint. It is no longer a matter concerning only the entrepreneur, but involves a complex ecosystem of stakeholders: employees, suppliers, creditors, institutions.

Introduced in 2001, the 231 Model has established itself as a key tool for companies aiming to adopt an effective and responsible management system. Thanks to its ability to map business processes and identify risks and responsibilities, it serves as valuable support in structuring the organization consistently with its size and operational complexity.

Today, in a context in which environmental challenges are increasingly pressing and social awareness is growing, it is evident how nature directly affects the availability of resources, production chains and, consequently, corporate business. A concrete example of this dynamic is provided by Illy's research on Arabica coffee. With the forecast of a 50% reduction in the land suitable for Arabica coffee cultivation by 2050, Illy has collaborated on a project to sequence the genome of Arabica coffee , making the results available to growers. In this way, producers can adapt plants to the challenges of climate change, such as rising temperatures, droughts and floods. In the face of scenarios like this, it becomes essential to recognize nature as a stakeholder within corporate decision-making processes. However, this integration raises two main challenges: Conflict between environmental and social interests and financial goals: how to balance economic and environmental needs? Lack of formal recognition of "Nature" as a stakeholder in financial reporting systems, preventing it from being treated as an element to be "remunerated" or included in the distribution of the value created. The latter barrier could be overcome through regulatory interventions that impose environmental compensation obligations, thus pushing companies to internalize the costs and responsibilities deriving from their activities. A new model: the Sustainable Value Table (SVT) The answer to these challenges comes from the study Calculating Sustainability – Can Accounting Save the World? , which proposes the Sustainable Value Table (SVT) , an accounting model designed to link the financial dimension (represented by the income statement expressed in terms of value added , in which "Nature" as a stakeholder is also present) to the non-financial dimension expressed through the Sustainable Development Goals ( Sustainable Development Goals, SDGs ). This SVT matrix, shown in the following figure, promotes double materiality , recalled by the ESRS principles, guiding companies towards more sustainable and holistic decisions. Regardless of the sector in which the company operates, the SVT matrix represents a tool to understand how business activities can contribute to one or more SDGs. A practical approach to sustainability In practice, the company can classify the SDGs into two main categories: Increased positive externalities Reduction of negative externalities To date, the too broad definition of the SDGs makes it difficult to associate them with specific budget items. For this reason, SVT is mainly used as a qualitative tool to map the current state of value creation, identify areas for improvement and guide business strategies. SVT supports the optimisation of short-term adjustments in value distribution to offset negative impacts from value creation. A possible future for sustainable reporting Although today the Sustainable Value Table is not yet a mature tool to be used as a reporting method, it already represents a valuable resource for guiding corporate policies, investments and sustainability practices. The results that emerged from the use of the SVT matrix could be included in sustainability statements, helping to make the link between the company's activity and its environmental and social impacts more transparent and strategic.

Despite the postponement of deadlines for the implementation of sustainability reporting obligations (the so-called "Stop the Clock"), investor demand for transparency on ESG metrics continues to grow. This trend has had a positive impact on companies, leading to a reduction in their cost of equity, particularly for the disclosure of social issues following the 2015 Paris Agreement.

With the adoption of the Business Crisis and Insolvency Code (CCI) , the reform of bankruptcy law introduced a new approach to business crisis management , shifting from legislation that provided tools to intervene when a company was already in a state of declared insolvency to a code aimed at preventing insolvency and intervening promptly to preserve business continuity.

Context Recent regulatory updates mark a temporary pause in reporting obligations for large companies.

Today's regulatory landscape: what you need to know? At the end of February 2025, the European Commission presented the “ Omnibus I ” package, aiming to reduce reporting burdens and strengthen competitiveness, while maintaining the strategic objectives of the Green Deal . In this context, the European Parliament approved the “ Stop the Clock ” proposal, which postpones the following regulatory deadlines: Corporate Sustainability Due Diligence Directive ( CSDDD ): Member States will have one additional year to transpose the provisions into national legislation. The same delay applies to EU companies with more than 5,000 employees and a net turnover exceeding €1.5 billion, as well as to non-EU companies generating turnover above this threshold within the EU. Corporate Sustainability Reporting Directive ( CSRD ): Large companies with more than 250 employees or a turnover exceeding €40 million (the so-called “second wave”) will be required to report on their social and environmental measures for the first time in 2028, instead of 2026. Listed SMEs (the “third wave”) will report such information in 2029. Voluntary sustainability: an opportunity to embrace? The “Omnibus I” package highlights the importance of voluntary sustainability reporting for companies not subject to mandatory disclosure obligations. The European Commission plans to publish a recommendation on voluntary sustainability reporting, pending the adoption of a dedicated delegated act, based on the VSME standards developed by EFRAG and published in December 2024. The postponement granted by the “Stop the Clock” initiative represents a strategic lever for companies aiming to enhance their resilience in an uncertain economic environment. Environmental, social, and corporate conduct topics—addressed in voluntary sustainability reporting—offer businesses the opportunity to make more informed decisions, seize new business opportunities, and strengthen their market position. These developments at the European level are part of a broader context, in which national initiatives have also been adopted to support small and medium-sized enterprises in their transition toward more sustainable practices. The Italian Ministry of Economy and Finance (MEF) has established a Coordination Table on Sustainable Finance, with the aim of supporting Italian SMEs in collecting sustainability-related information, following a principle of proportionality based on company size. Following the consultation launched in August 2024, the Table published an updated version in December 2024, with the goal of providing a reference model for the standardization of sustainability disclosures. This model is designed to support companies in understanding and managing environmental, social, and governance (ESG) issues, thereby facilitating a more structured approach to sustainability. Adopting voluntary sustainability reporting offers several benefits for SMEs: Better access to financing : businesses can benefit from more favorable conditions and lower costs. Priority access to incentives : SMEs may have the opportunity to obtain grants and incentives more quickly. Better risk management : collecting data on sustainability allows for better investment planning and risk monitoring. Greater resilience : businesses improve their ability to manage the impacts of energy and environmental shocks. Strengthened corporate reputation : greater transparency and attention to sustainability can enhance the company’s image in the market, increasing consumer trust. These benefits make voluntary sustainability reporting a strategic choice for SMEs that want to improve their competitiveness and resilience in the long term. Technesthai, with its financial planning product - Dynamic Business Planner (DBP) - has activated the Dynamic Sustainability Report module with the specific goal of supporting SMEs in ESG reporting: the module already includes the ability to create a sustainability report aligned with the MEF methodology and compliant with European regulations, as well as enabling specific investment plans to improve ESG performance. Visit our Products page to learn more.

The CSDDD (Corporate Sustainability Due Diligence Directive) aims to make companies responsible for environmental and human rights impacts throughout the entire value chain, imposing due diligence obligations on the entire supply chain to foster a sustainable transition and protect people and the planet. Discover all the news and updates on the topic by downloading the presentation!