III. Expectations towards business companies

“The renewed and dynamic entrepreneurial approach is based on corporate governance structures to overcoming short-term financial advantages for environmental, social and human sustainability in the medium and long term in the context of the European Union’s initiatives on the circular economy, biodiversity and sustainable financial growth. At the same time, corporate governance was consolidated through the implementation of Directive (EU) 2014/85 on non-financial reporting, so relevant today. Its revision is in pipeline with the challenges posed by the pandemic and mentioned in the Communications on the European Green Deal and on “Europe’s moment: Repair and Prepare for the Next Generation” for a business vision of the opportunities for economic recovery in the long term.” (p. 12)

IV. Italian ongoing activities and future commitments

Gender dimension

“Italy has domestically transposed Directive (EU) 2014/95 on non-financial reporting through Legislative Decree No. 254/2016 and, in this context, an important inspection and verification activity by CONSOB of non-financial reporting is being conducted. Its ultimate aim is to verify adequate and transparent information along the supply chain, and also on processes of Due Diligence and management of the risk of violation of human and labour rights along the supply chain.” (p. 34)

ANNEX 1 – Accountability Grid and Assessment Tools for the Implementation of the NAP

“16. Further promote an effective implementation of Legislative Decree No. 254/2016 implementing Directive (EU) 2014/95 on the disclosure of non-financial and diversity information by large companies and groups of companies, including through a benchmarking exercise carried out on a sample of companies and aimed at analyzing the effective inclusion of the human rights dimension in non-financial reports published by companies and supervised by CONSOB, including in relation to diversity and gender.” (p. 63)

“34. through new mechanisms of monitoring and recognition of business activities, provide for an analysis of the Due Diligence of public or state-controlled companies, including non-financial reporting” (p. 66)

“35. continuing the promotion and protection of human rights, with a proactive role of the Inter-ministerial Committee for Human Rights, in correlation with the priority lines introduced in the framework of the PNRR and the SNSVS, including – among others – issues such as anti-corruption, non-financial information disclosure , supply chain, environmental issues, decent work and non-discrimination in favour of competing companies in public calls for tender and within contracts stipulated with companies for the purchase of goods and services, with particular regard to (i) Italian companies operating abroad; (ii) Italian companies using foreign suppliers; (iii) foreign companies” (p. 66)”

ANNEX 2 – Summary of the results of the assessment concerning the implementation of the first PAN-BHR

“It has been deemed necessary to ensure the accompaniment of companies in their growth on issues such as social value and sustainability, for example by enlarging the number of companies that have voluntarily published non-financial information in their financial statements and encouraging them to adopt new communication approaches regarding ecological footprint of their products and production processes.” (p. 70)