What is a Sustainability Report

Companies have an impact on the environment, on the economy and on society, regardless of their field of activity. A Sustainability Report is in this context a strategic tool to assess this impact. This type of report reflects an organization's commitment to sustainable development and transparency in its actions.

Definition of a Report of Sustainability

A Sustainability Report is an official document through which a company or public institution communicates information about the impact of its activities on the environment, society, and the economy. It includes data on resource consumption, carbon emissions, social and governance policies, economic performance, and much more.

The main purpose of this report is to provide transparency and enable stakeholders—customers, investors, employees, authorities—to understand how the organization manages sustainability challenges.

In Romania, according to the legislation in force (in particular Ministry of Finance Order No. 1938/2016 and subsequently Order No. 3456/2018), the following categories of companies are legally required to prepare and publish a Raport de Sustenabilitate (raport nefinanciar):

Who is responsible for developing a Report of Sustainability

1. Public interest entities which, on the balance sheet date, exceed the following criteria:

1. which, on the balance sheet date, exceed the following criteria: employees;
2. total assets of over 20 million euros;
3. net turnover exceeding 40 million euros.
4. Public interest entities include:

1. publicly traded companies;
2. banks;
3. insurance and reinsurance companies;
4. financial institutions;
5. other entities defined by law as having significant public interest.

What should the sustainability report contain?

The non-financial report must contain information relating to:

• environmental issues;
• social and personnel issues;
• respect for human rights;
• fighting corruption and bribery;
• corporate governance and the risks associated with these issues;
• the policies implemented, the results achieved, and the relevant indicators.

European regulations (updated):

According to the new European Directive on Corporate Sustainability Reporting (CSRD – Directiva privind raportarea privind sustenabilitatea corporativă), starting with 2024, gradually, reporting obligations become applicable to all large companies and listed companies, as follows:

• from 2025 (for the financial year 2024): large companies, listed or unlisted, that meet at least two of the following criteria:
  • peste 250 employees;
  • net turnover over 40 million euros;
  • total assets over 20 million euros.

Subsequently, listed SMEs will also be gradually included in this obligation.

Structure of one Report of Sustainability

A Sustainability Report usually includes the following components:

• General information about the company: misiune, viziune, valori, model de afaceri;
• Strategia de sustenabilitate: objectives, policies, commitments;
• Environmental performance: energy consumption, greenhouse gas emissions, waste management, water use, biodiversity;
• Social performance: employee rights, gender equality, community impact;
• Economic performance: income, investments, contribution to the local economy;
• Performance indicators: relevant quantitative and qualitative data;
• Refer to international standards: come GRI (Global Reporting Initiative) o SASB (Sustainability Accounting Standards Board).

Why is it important to have a Report of Sustainability

The importance of a Sustainability Report cannot be underestimated in the current context, where investors, customers, and authorities demand ever greater transparency and accountability from companies. This report allows:

• Monitoring the impact on the environment and society;
• Assessment of risks and opportunities related to sustainability;
• Alignment with national and European regulations;
• Improving the company's reputation and attracting responsible investors;
• Basing business decisions on sustainability criteria.

Furthermore, a well-prepared sustainability report can support companies in accessing green financing and in their relations with institutional partners.

Rolul auditorului de mediu in elaborarea unui astfel de raport

In order to ensure the accuracy and credibility of the information presented in a sustainability report, it is necessary to involve an environmental auditorIts role is to objectively evaluate the company's environmental practices and policies, identify non-conformities, and propose improvement measures.

An environmental auditor can contribute significantly to the preparation of the report by providing support in data collection, document verification, and the formulation of conclusions. With their expertise, the sustainability report becomes a credible and relevant tool.

Challenges in achieving a Report of Sustainability

Among the difficulties frequently encountered by companies in preparing a Sustainability Report are:

• Collecting and centralizing relevant data;
• Lack of an internal sustainability governance framework;
• Lack of knowledge of reporting standards and legal requirements;
• Limited human and financial resources;
• The need to adapt the language and content of the report to different audiences.

To overcome these obstacles, companies can turn to specialized consultants and invest in internal training for teams responsible for sustainability.

Beyond being a complex technical document, a Sustainability Report is a statement of responsibility and a sign of organizational maturity. In a world where demands for environmental protection and social equity are becoming increasingly imperative, companies that communicate their sustainability performance transparently and coherently are the ones that earn the trust of the market.

Whether it's a legal requirement or something you do on your own, a Sustainability Report is a strategic tool that helps build lasting relationships with everyone who matters. And to ensure it is produced to the highest standards, the expertise of an environmental auditor and a structured approach to waste management can make the difference between a formal document and a truly valuable report.