Improving ESG data availability and sustainability corporate reporting in Italy

The Commission is helping the Italian Ministry of Economy and Finance (MEF) enhance the availability and quality of Environmental, Social, and Governance (ESG) data. The project consists of mapping ESG data sources and existing data gaps in the context of requirements from the Corporate Sustainability Reporting Directive (CSRD) and the EU Taxonomy Regulation. The project is also aimed at designing a data hub for facilitating access to relevant ESG data, designing a reporting template for non-listed SMEs, and capacity building for the private sector related to ESG challenges and reporting.

Context

The Italian government has taken a proactive approach in supporting its businesses in the adoption of the ESG reporting frameworks. There is a strong project focus on the SME sector, in particular for non-listed SMEs, where business owners are stretched to fulfil multiple regulatory requirements with limited resources. There is a particularly strong need to facilitate the collection of relevant indicators/information that could drive the reporting of those companies to banks and other investors  which the delivered support is addressing.

Support delivered

The project is developing a map of existing ESG data in Italy, looking at national and international sources, and at the same time identifying gaps in data collection and availability, considering EU legislative requirements and international best practices. Based on the findings of the mapping exercise the provider is developing a concept for a public data hub to make ESG data more accessible and usable for businesses and financial institutions, looking into the most suitable legal and technical set-up including the ownership, governance, and maintenance features.

A template for non-listed SMEs to disclose ESG data is also in the making. It is being defined in collaboration with public and private stakeholders which have been providing valuable input for the the template design. An e-learning course on ESG challenges aimed at businesses is being put together, complimented by an exchange on best practices on ESG-related capacity building for SMEs that is being delivered to relevant Italian public authorities.

Expected Results

The project is expected to result in improved availability and quality of ESG data, and enhanced sustainability corporate reporting. Companies should improve their understanding of ESG challenges thanks to the capacity buildings materials, be able to more easily assess their exposure to climate and environmental risks, and be ready to comply with existing or forthcoming obligations from the EU legislative framework.