Best Practices in Sustainability Reporting 2024: Insight from the OIBR Conference

Sustainability reporting is undergoing a profound transformation, driven by the latest EU regulations. This year, we also took part in the conference on “Italian best practices in sustainability reporting” organised by O.I.B.R. (the Italian Foundation for Business Reporting), in collaboration with Assobenefit, FERPI and Mercurio GP, which provided valuable insights into the future of ESG reporting.

The event, designed as a follow-up to the 2024 Budget Oscars, brought together experts and industry leaders to discuss emerging trends and the most innovative practices in non-financial reporting. As double finalists at the 2024 Budget Oscars, we had the honor of actively contributing to the debate by sharing our firsthand experience with the latest edition of our Integrated Report.

Here are the key takeaways from the conference, valuable to those involved in sustainability reporting.

Benefit Corporations: Pioneers of innovation in sustainability practices and reporting

Benefit Corporations continue to lead the way in addressing societal evolution and advancing non-financial reporting. By integrating common benefit goals into their business long before sustainability became mainstream, these organizations foresaw current trends in ESG impact measurement through their impact reports.

By integrating social, environmental and economic impacts into the business with a holistic approach, Benefit Corporations have developed a culture of Integrated Thinking ahead of its time, pioneering the current reporting now mandated by the EU CSRD Directive.

During the 60th Budget Oscars ceremony, excellence was recognized and highlighted in the three conference sessions. Reale Mutua secured first place, demonstrating its ability to develop a virtuous example of integrated reporting that combines financial and sustainability reporting, creating measurable value for the community.

Among the other two finalists in the Benefit Corp category, Labomar has implemented an effective scientific quantitative system for measuring ESG impacts, going beyond the purely qualitative approach. Way2Global, the smallest of the trio, shows how sustainability-oriented governance, such as the Benefit model, can help SMEs effectively anticipate European regulations.

From NFD to CSRD: the evolution of sustainability reporting standards

The second type of reporting examined at the conference was the Non-Financial Declaration (NFD), which is expected to decline rapidly due to the new standards introduced by the Corporate Sustainability Reporting Directive (CSRD).

Many companies are using this transition period to proactively adapt to the new standards through the practice of NFD.

In the Italian context, SNAM stands out as a pioneer in implementing dual materiality, while Fincantieri has successfully transformed sustainability into a tangible competitive advantage. Completing the winning trio in this category, Gruppo CAP has shown great commitment and skill in simplifying ESG data, making it accessible even to non-experts in the sector, and demonstrating how the complexity of reporting can be communicated clearly and effectively.

Integrated Reporting: the future of corporate reporting

The integrated report is the most comprehensive and mature tool for communicating business value creation by combining both financial and non-financial metrics.

CADF and Unipol Group, ranked first and second in this category at the Budget Oscars, represent virtuous examples of this advanced approach, demonstrating how transparency and clarity can make a difference. CADF has integrated sustainability into its management report with clear, accessible communication, while the Unipol Group stands out for its solid dual materiality analysis and robust risk management system, which enhance the transparency and credibility of its reporting.

Ranked third in this category, Way2Global once again presented an innovative system, merging the Integrated Report with the Impact Report into one Integrated Management Report, alongside the first prototype of the VSME-compliant Sustainability Statement.

As Prof. Zambon, moderator of the panel on the Integrated Report, pointed out, the award-winning cases presented at the conference showcased significant best practices: an in-depth analysis of the relationship between risks and stakeholders, careful attention to stakeholder needs, identification of KPIs effectively linked to the management of the six corporate capitals, a concrete focus on future prospects and the measurement of intangibles, as well as a clear structure with an easy-to-follow reading guide and index.

In comparison with these exemplary cases, the analysis of other reports reviewed by the Budget Oscar committees highlighted several critical issues: lack of synthesis and coherence, confusion between integrated reporting and simple content aggregation, improper use of reporting as a marketing tool, and superficial governance analysis. Another common issue is insufficient integration of digital and interactive tools, which limits the communicative effectiveness and accessibility of the documents.

The most significant challenge for all organizations is reconciling the IR International Framework’s requirements with the new provisions of the CSRD (ESRS or VSME Standards for SMEs reporting voluntarily). In this regard, the expected Omnibus Decree from the European Commission could provide clearer guidelines to ease the transition toward an Integrated Management Report fully compliant with international standards.

The Role of Communication

Along with the strategies and content quality implemented by the award-winning companies, the Conference also highlighted the crucial role of communication in sustainability reporting. In the words of Dr. Maranini, a communication expert, a report must be more than just a collection of data and numbers; it must also serve as a true relationship tool, capable of reflecting the quality of the relationship between the company and its stakeholders.

For reporting to be effective, companies must communicate their impacts in a clear, accessible, engaging way. Visual tools, such as infographics and interactive reports, enhance understanding, transforming a formal document into a dynamic, usable experience. While ensuring the transmission of information, an effective communication must also inspire trust and engagement, creating an authentic connection with its audience.

These are the key elements that, according to Maranini, transform a report from simple documentation to a true reporting tool:

• Identity – to clarify who the company is and what values it upholds
• Empathy – to foster an authentic connection with stakeholders
• Clarity – to ensure comprehensibility of information
• Consistency – to build credibility and trust over time
• Responsibility – to reflect concrete, measurable commitments
• Authenticity – to communicate directly and sincerely
• Usability – to create an accessible, easily understandable report

These principles underpin best practices in sustainability communication, transforming reporting into a tool that creates value, builds trust, and fosters constructive dialogue with stakeholders.

Our Commitment to Sustainable Reporting

At Way2Global, we believe that every company has a responsibility to contribute to sustainable development, and that sustainability reporting is a key tool in promoting this sustainable culture. For this reason, despite our small size, we have ambitious goals for sustainable business transformation.

The CSRD marks just the beginning of a broader journey, typical of Benefit Corporations, extending beyond regulatory obligations to encompass all aspects of operations and governance.

Our case study is a call for all companies to adopt the Benefit model and embark on a transformative journey to build a sustainable future that balances profits, people, and the planet.

The European vision of sustainable development provides clear guidance, but only through collaboration and innovation can we achieve tangible, ambitious goals.

Sustainable change is not only possible; it is essential for the future of business.