EcoVadis Bronze Medal: Tecno ESG among companies with sustainable management models
We were awarded the EcoVadis bronze medal again this year, the program that rewards companies with a solid, sustainability-driven management system. An indicator of positive intent, rewarding companies’ sustainable performance in environmental, ethical, labor practices, respect for human rights and sustainable purchasing. Sustainable business management models represent an innovative and imperative approach for modern businesses; a paradigm that not only aims to maximize short-term profits, but is useful in creating long-term value for all stakeholders, including employees, customers, suppliers, local communities and the environment. What is the significance of EcoVadis ratings? EcoVadis offers companies a sustainability assessment service to evaluate the impact of their business in ESG terms, based on hard data. The EcoVadis score, which ranges from 0 to 100, reflects the quality of a company’s sustainability management system at the time of assessment. EcoVadis medals are awarded to companies that meet certain sustainability criteria and have successfully completed the assessment process, rewarding the best performance in the corporate landscape. Specifically, the medals are divided as follows: Platinum (Platinum): best 1% of evaluated companies; Gold (Gold): best 5% of evaluated companies; Silver (Silver): best 15% of evaluated companies; Bronze: best 35% of evaluated companies; The sustainable business management model promoted by EcoVadis helps companies mitigate operational and financial risks associated with dependence on nonrenewable resources, and manage natural resources responsibly. By integrating environmental, social, and governance considerations into their operations, companies can reduce negative impacts on the planet and society while minimizing potential legal risks, penalties, and reputational damage. From business management model to people: a journey that makes us proud Sustainability encourages innovation, pushing companies to seek creative and technological solutions to environmental and social challenges, thereby creating new business opportunities and meeting the emerging needs of conscious consumers. At Tecno ESG, the adoption and promotion of environmental, social, and governance criteria in business strategies represent a value that drives the entire organization, which has always been oriented to the three P’s of sustainability: People- Profit-Planet. We recognize the value of sustainable business models, marked by the measurement and reduction of environmental impacts, respect for the land and people, focused on business growth and the distribution of value among stakeholders. It is thanks to this awareness, the foresight of the ownership, and the skills of our professionals that we were able to obtain this important recognition. A new milestone that opens future scenarios oriented to the constant improvement of our sustainability performance, to continue to contribute to the achievement of the SDG’s identified goals. To continue to grow and create value together.
Greenwashing as an obstacle to (CSR) Corporate Social Responsibility
Attention to environmental and social sustainability has taken center stage in public discussions and strategic choices adopted by companies. Along with consideration of the environmental impacts of products and organizations, an essential factor in the environmental debate has emerged over the years: the communication of information regarding sustainability; an integral part of corporate social responsibility. In this content we will explore a phenomenon that affects this type of communication, namely greenwashing: its causes, effects, and strategies to counter it. In addition, we will delve into the concept of corporate social responsibility, analyzing how companies can authentically commit to sustainability and social welfare, going beyond mere declarations of intent and demonstrating a true commitment to positive change. Greenwashing practices and related risks Greenwashing takes the form of distorting and misleading actions through which an organization or business tries to present itself as more sustainable and compliant with regulations and sustainable practices than it actually is. It is conduct that falls in a gray area, between misleading advertising and unethical practices related to Corporate Social Responsibility, and may involve information pertaining to: False statements about the environmental impact of products and the organization; Misuse of certifications and eco-labels on labels; Corporate Social Responsibility (CSR) initiatives publicized for the sole purpose of diverting attention from unsustainable practices; Exaltation of sustainable qualities of products or their life cycle that is untrue or intended to mask the environmental impacts of their production, use, and disposal; Lack of clarity on the allocation of investments in sustainable projects; Use of misleading images or messages on digital platforms to promote a company’s “green” image, along with the creation of misleading narratives through digital marketing strategies. Engaging in such conduct is a damaging move for the corporate image and the organization as a whole, significantly affecting the trustworthiness of the company, in the eyes of stakeholders and end consumers. Damage to corporate image is not alone among the risks associated with greenwashing; there are also: Any reports, and administrative and financial penalties from public authorities or Certifying Bodies; The possible exclusion from funding calls reserved for low-impact enterprises; The decline in consumer interest and thus sales; The loss of potential and current partnerships. To prevent a company from adopting greenwashing practices and incurring these risks, it is necessary to adopt an approach that clearly and transparently communicates and conveys the company’s ESG commitment. The role of corporate social responsibility in combating the phenomenon of greenwashing Companies that integrate ESG factors into business strategies are aware of the importance of Corporate Social Responsibility. Corporate Social Responsibility (CSR) helps counter the phenomenon of greenwashing by promoting business practices that are authentically consistent with respect to Environmental, Social and Governance criteria. In fact, the factors that fall under CSR include: Transparency and accountability: companies that invest in ESG initiatives are usually more transparent about the environmental and social practices and impacts of their activities; Measurement and monitoring: companies committed to CSR implement systems for measuring, monitoring and reporting their environmental and social performance, following the standards set by national and international standards, such as the CSR Directive. These tools provide reliable and verifiable data that can be used to demonstrate the real impact of products, organizations and corporate governance; Stakeholder Involvement: companies that promote their social responsibility actively involve stakeholders in corporate decision-making, including consumers, investors, local communities, and nongovernmental organizations.Involvement that promotes transparency, accountability, the circulation of information by steering away all related risks. How to avoid greenwashing with an ESG communication plan The phenomenon of greenwashing is the subject of internationally renowned legislative initiatives, such as the recent European Green Claims Directive. As much as these conducts are now known to most companies, avoiding incurring these practices is not easy: the risk of transmitting information in an inappropriate way is high, both with reference to technical and more generic content. A good strategy to counteract greenwashing is to build an ESG communication plan: transparent, comprehensive and in line with the sustainable goals your company pursues. Together we can devise a communication plan capable of conveying the company’s commitment in a way that is clear and appropriate for your audience, while avoiding the risk of providing misleading information.
What does corporate social responsibility consist of and what role does it play in the company?
Corporate Social Responsibility (CSR), or Corporate Social Responsibility, was defined by the European Community, within the Green Paper, as “the integration on a voluntary basis by companies of social and environmental concerns into their business operations and relations with stakeholders.” That of CSR is a concept that has evolved over time from referring to the relationship between the company and its stakeholders in terms of trust and corporate reputation, to that of concrete commitments made by the company in the social and environmental spheres. This type of Corporate Social Responsibility is commonly referred to as “social” because it refers to logics that go beyond profit maximization goals. The principles of Corporate Social Responsibility include: promoting environmental sustainability, respecting human rights, transparency, compliance with laws and regulations, stakeholder involvement, and improving the social and economic conditions of communities. In this article we delve together into the role of CSR in companies, what kind of effects it has in terms of corporate reputation, and what are the best strategies for communicating these principles to consumers and stakeholders. The CSRD Directive and Corporate Social Responsibility Corporate Social Responsibility encompasses within it numerous sustainable practices that pertain to Environmental, Social and Governance factors, such as: reducing greenhouse gas emissions, adopting fair labor policies, supporting local communities through third-sector funding programs, and adopting policies of transparency and reporting about the impacts of the business conducted. On the topic of Corporate Social Responsibility, and its integration within ESG factors, there are numerous legislative initiatives on the subject: the ISO 26000, the European Directive on mandatory DNF (Non-Financial Reporting), and the more recent Corporate Sustainability Reporting Directive (CSRD). The CSRD directive, which came into effect on January 5, 2023, strengthened the rules inherent in social responsibility reporting and disclosure requirements for companies with more than 500 employees, banks, insurance companies, and listed companies of any size (except for micro enterprises), totaling about 50 thousand companies. The benchmarks that companies will need to refer to are. the ESRS standards issued by the European Financial Reporting Advisory Group (EFRAG) and mentioned within the directive as a benchmark for assessing compliance with the ESG obligations of the companies involved. From a Corporate Social Responsibility perspective, it is necessary for companies to adopt a culture of commitment and transparency about the social and environmental impact of their business, with a focus on the following aspects: Environmental issues; Social, welfare and workers’ welfare issues; Respect for human rights; Countering corruption; Promoting inclusiveness and inclusion. Compliance with these principles must be reported and made accessible to the public, through ESG performance analysis and evaluation tools such as the Report or Sustainability Report. What impact does CSR have on the external community and corporate reputation? The concept behind Corporate Social Responsibility (CSR) emphasizes that the pursuit of profit alone is no longer adequate to ensure an organization’s survival. Since CSR is closely linked to stakeholders, who play a crucial role in creating and maintaining corporate reputation, it becomes imperative to adopt CSR policies and practices to preserve, on several fronts, the company’s reputation, which is directly related to social relations and communication activities. Corporate reputation is a central element in the management of the company’s relationships with external society: both with respect to potential and current investors and with respect to end users, consumers and potential candidates. A transparent and clear policy about a company’s Social Responsibility initiatives is the most immediate way of external transmission of corporate values: a factor that creates a solid corporate reputation, contributes to increased profits and builds the loyalty of the investing public and consumers. It is necessary to view CSR practices as a long-term investment that the company chooses to make in order to enhance its reputation and to integrate or improve the Social factor within business operations, with the aim of creating a positive and sustainable-conscious climate. In essence, it is the initiatives pertaining to Corporate Social Responsibility that are the main driver for value creation in the company, because they encapsulate the commitment to sustainable, social and governance issues that the company undertakes. How to communicate corporate social responsibility? With the rapid evolution of Corporate Social Responsibility (CSR) and the increasing need to act in accordance with institutional and social-environmental standards, numerous tools have been developed that facilitate the implementation of ethical policies, allow monitoring of results and, most importantly, offer companies the opportunity to demonstrate externally that their actions are in line with what they claim to practice. These tools include reporting documents on companies’ ESG performance, goals and achievements, such as the Sustainability Report and the Sustainability Balance Sheet also of fundamental importance as a matter of relationship management with stakeholders, who, thanks to these tools, have a pool of sources from which to find information about the company. To communicate Corporate Social Responsibility, the company can also use more traditional tools designed to show the public what principles the entire organization is founded on, for example: Charter of Values: containing the vision and mission; a document encapsulating long-term strategic goals; Code of Ethics: a corporate document in which the moral duties of the company and the rights of employees appear. Its usefulness is to define and illustrate the ethical-social responsibility of each member of the organization. The general principles contained in the Code of Ethics are fairness, transparency, honesty, environmental and personal protection; Other corporate communication tools, such as training initiatives carried out, or online and offline awareness campaigns. In communicating a company’s social responsibility, it is important, as well as required by law, that the information provided be: True and not misleading, thus pertaining to initiatives actually implemented by the company; Consistent with the Environmental, Social and Governance goals that the company has established. In addition, the communication of corporate sustainability, and everything that falls under Social Responsibility, must be structured in such a way that the information is made accessible to external audiences, and thus is clearly understandable and usable. Accelerate the transition to a corporate social responsibility
On-farm sustainability and sustainable practices
Sustainability holds multiple opportunities for companies-economic, reputational, social-opportunities that enable them to approach stakeholders, beginning with employees and ending with banks and lending institutions, attentive to the dominant criterion of sustainability. This thesis is confirmed by the increasing attention of companies to documents such as sustainability reports or balance sheets; companies that are preparing to report on their ESG performance even though they are not yet obligated under the provisions of the Corporate Social Responsibility Directive (CSRD). Sustainability in the company is determined by the presence of sustainable policies and practices, activities that can be identified and implemented only after carefully investigating the company’s level of sustainability. Defining the starting point, in fact, is essential to understand the existing gaps, one’s positioning with respect to the industry, and thus define effective strategies to improve its performance. On April 27, 2023, Istat published the study “Sustainable Business Practices in 2022 and Prospects 2023-2025“; data from which interesting information emerges and invites reflection on the validity and recognizability of sustainable actions. Measuring sustainability: why it matters and which tools to prefer Before even talking about the sustainable practices to be implemented in the company, the most widespread ones, what Italian companies have already accomplished in 2022 in the field of sustainability and what is expected of them in the future, it is necessary to dwell on a concept that cannot be left out if the real intention of a company is to act for corporate sustainability: measurement. Measuring sustainability means examining the company profile under the lens of environmental, social and economic sustainability. What does the company do to protect the environment? What practices does it adopt to make its processes and/or products more sustainable? What resources are used to meet the company’s energy needs? And in the social and governance sphere, does the company adopt specific policies to protect employees? Does the company’s workforce have people assigned to the development of corporate sustainability? Companies wishing to investigate corporate sustainability performance must first find an answer to these and other questions, and then understand what impact the actions taken have on the environment, society and stakeholders, and devise effective strategies and practices for achieving new goals to achieve corporate sustainability. Sustainability in business: the assessment tools To know their level of sustainability, companies undergo assessment tools aimed at defining the company’s ESG performance, investigating the relevant sector, and identifying possible actions to implement to improve their performance. Assessment tools are quite common, sometimes consisting of free online questionnaires or paid assessment platforms (e.g., EcoVadis) that through specific questions or indicators guide the company toward understanding its performance and supply chain. To make an informed and beneficial choice , it is essential to prefer assessment tools that are recognized and certified by international bodies, guarantors of a methodical and transparent approach to assessing corporate sustainability. Sustainable practices: from environmental protection to social and economic sustainability Companies take different actions to strengthen and improve their sustainability performance. The study published by Istat last April, “Sustainable Business Practices in 2022 and the 2023-2025 Outlook,” shows a higher attitude toward sustainability practices by large enterprises, with 81.5 percent compared to 36.1 percent for small enterprises. In 2022, the most active companies in sustainability were manufacturing companies (59.5 percent) and service companies (50.4 percent). In both sectors, the focus on environmental protection practices seems most evident, followed by actions for social and economic sustainability. Popular sustainable practices include: the use of renewable energy sources and energy efficiency actions; followed by interest in circular processes for water recycling, use of secondary raw materials, and adherence to industrial symbiosis. 64.5 percent of manufacturing companies surveyed for the Istat survey say they will be even more active in this area in the three-year period 2023-2025. This growing trend is confirmed by 52.5 percent of service companies, which declare more commitment with concrete actions in all sustainability areas surveyed. A company’s sustainability is measured by the activities and practices it implements in the area of ESG – Environment, Social, Governance. Environmental (Environment) practices are geared toward measuring and improving over time the impact that company activities, processes and products have on the environment. These practices-which find concrete expression in studies and management systems that follow ISO standards-aim to: to reducing the climate and environmental footprint of the organization, products or services; To the responsible management of energy, water, and waste resources; to the implementation of technologies and methods for the development of circular processes aimed at the reuse and recycling of secondary raw materials, production waste, waste and natural resources. Social sustainability (Social) practices cover the policies adopted, protocols implemented and actions taken by the company to care for, grow and manage employees, develop the local community and promote the issues and values cherished by the company. Sustainability in employee management is closely related, for example: To the implementation of a management system for worker health and safety that complies with current legislative standards; To the adoption of procedures to ensure clean workplaces; To the establishment of a plan for general and specific professional training of employees; to the introduction of strategies aimed at worker well-being, to ensure work-life balance (e.g., childcare, wellness classes, etc.), to ensure gender and wage equality, inclusion, internal communication; To the implementation of procedures to ensure data privacy and security. In addition, the actions that the company takes toward the local community, investing part of its value for the development of society, through: activities to raise awareness of issues and values dear to the company (e.g., diversity, corporate responsibility, climate change); donations or financial support to local and/or sector governments or agencies; Finally, there are the practices for the development of ethical and responsible governance (Governance); a sphere that purely affects the corporate workforce, value chain, principles of transparency, clarity, legality, whistleblower management and more. These practices aim to: To strengthen corporate economic stability; To define the economic value generated and distributed among stakeholders; To improve risk management; To increase the ability to define and
Climate change adaptation: from the PNACC to the DNSH statement
The introduction to the National Climate Change Adaptation Plan (NACCP) plays a key role in the context of climate change management. This tool strategic provides an overview of the challenges that climate change presents to the national context, as well as strategies and planned actions to mitigate negative impacts and take advantage of emerging opportunities. Let’s explore together the legal process that led to the introduction of the PNACC into the Italian legal system, its practical implications, and the link between the plan’s objectives and the Do Not Significant Harm (DNSH) principle that underlies the measures in the PNRR. The National Climate Change Adaptation Plan: structure and function The Minister of Environment and Energy Security (MASE), through Decree no. 434 of Dec. 21, 2023, approved the PNACC, National Climate Change Adaptation Plan. It was a key step in planning and implementing climate change adaptation actions in Italy, in line with international measures on the issue, such as the Adaptation Strategy that the European Commission published in 2021. The Plan is the result of a series of environmental initiatives that began in 2015, when the Ministry of the Environment developed a strategic document containing action criteria for coping with climate change, namely the National Climate Change Adaptation Strategy (SNAC). After a lengthy approval process, the MASE approved the National Climate Change Adaptation Plan in December 2023: a programmatic document with 300 containment measures and adaptation strategies for phenomena such as global warming and resulting natural events. The structure of the PNACC is as follows: 1. Legal framework; 2. National climate framework; 3. Impacts of climate change in Italy and sectoral vulnerabilities; 4. PNACC measures and actions; 5. Funding arrangements for climate change adaptation; 6. Adaptation governance. On the one hand, PNACC aims to build an organizational framework marked by the establishment of governance structure and criteria and knowledge development; on the other hand, it builds a framework for the planning and implementation of concrete actions to be taken as measures to combat and contain climate change. The DNSH statement and ecosystem protection measures. In the context of international measures to protect the global ecosystem is EU Regulation 2020/852, which outlined the so-called Taxonomy for Sustainable Finance: a classification system for sustainable economic activities that identifies the six criteria useful for determining whether an activity, intervention or investment project contributes to the protection of the ecosystem, without causing significant harm to the environment, i.e., the so-called Do Not Significant Harm (DNSH) principle. The criteria outlined by the DNSH principle, precisely the DNSH criteria, are the basis for all interventions under the National Recovery and Resilience Plan. It is the NRP itself that stipulates that an intervention or investment project, in order to comply with the DNSH principle, and to access benefits under the Plan, must meet the requirements that the EU Regulation calls “Climate Targets,” namely: Do not cause significant greenhouse gas emissions (Climate Goal 1 – Climate Change Mitigation); not bring greater negative impacts on current and future climate, people, nature and property (Climate Goal 2 – Climate Change Adaptation); not harm the status of water bodies, nor lead to the deterioration of their quality or the reduction of their ecological potential (Climate Goal 3 – Sustainable use and protection of water and marine resources); not cause significant inefficiencies in the use of recycled or recovered materials, does not fuel the growth of waste, its incineration or disposal, causing long-term environmental damage (Climate Goal 4 – Transition to Circular Economy); not result in the increase of harmful emissions to air, soil and water (Climate Goal 5 – Pollution Prevention and Control); not damage the good condition and resilience of ecosystems, the conservation status of habitats and species (Climate Goal 6 – Protection and restoration of biodiversity and ecosystem health). The principle of “Do Not Significant Harm” (DNSH) is closely related to the National Climate Change Adaptation Plan in that both focus on responsible management of environmental and social impacts, including those resulting from climate change. DNSH declaration for companies: when is it mandatory? Companies that want to access financial resources under the National Recovery and Resilience Plan, in order to carry out investment projects or interventions, must demonstrate that these are not harmful to the environment and in line with the climate objectives under the DNSH principle. When reporting on the project, it is necessary to submit the so-called. “Declaration of DNSH compliance,” indicating all requirements aimed at verifying compliance with the climate objectives outlined in EU Regulation 2020/852. In addition to being a requirement for access to facilities, preparing the DNSH declaration also has reputational benefits for companies , as it is a certified source of their sustainable commitment and a record of compliance with regulatory obligations on the subject. Process the DNSH Declaration with the support of Tecno Demonstrating the compliance of an investment project is not a simple process, as it consists of detailed analyses related to the stage of its development, writing and submission. These analyses involve a careful assessment of the environmental impact that the process, product or service offered through the project has throughout its life cycle. At Tecno, we can offer you concrete support in verifying that your project or intervention complies with the DNSH principle, making it easier to obtain funding and facilities under the NRP. Demonstrate your project’s compliance with EU climate goals, We build the sustainable growth of your business.
Carbon management: an effective strategy for the company and the planet
Carbon management represents a strategic and systematic approach aimed at managing carbon emissions within organizations. In response to growing global concerns related to climate change, environmental regulations and international protocols have introduced the concept of carbon management as an integral part of sustainability-oriented business strategies. This approach focuses on measuring, reducing and offsetting greenhouse gas emissions in order to mitigate the environmental impact of business activities. Agreements and initiatives such as Agenda 2030 and the European Green Deal have among their main goals the reduction of Green House Gases (GHG) emissions and the achievement of carbon neutrality by 2050. Carbon management strategies are a practical response to this institutional desire, educate companies to constantly monitor and continuously improve their climate footprint, and are an important competitive differentiator. What actions does the carbon management strategy include? Carbon management, as anticipated, consists of a set of practices and strategies to measure, monitor, reduce and offset greenhouse gas emissions from business activities. Typical carbon management actions include: The measurement and monitoring of emissions: this stage involves the accurate assessment of GHG emissions generated by all business activities. This can include direct emissions (such as from industrial production) and indirect emissions (such as those associated with the supply chain); emission reduction: companies implement measures to actively reduce the carbon emissions they produce. This involves the adoption of low-impact technologies, actions to limit emissions related to the transportation of materials and products, employee travel, etc.; emission offsetting: when direct emission reductions are difficult to achieve, companies can engage in carbon offset projects. These projects involve financing environmental initiatives, such as reforestation or renewable energy production. Carbon footprint calculation and relevant ISO standards The carbon footprint study is the cornerstone tool of carbon management, aimed at measuring and analyzing greenhouse gas emissions: related to activities attributable to a business organization, in the case of organization carbon footprint (CFO); related to all product life stages, in the case of product carbon footprint (CFP). For carbon footprint measurement, it is necessary to follow the guidance of the subject-specific ISO standards. The adoption of these standards serves to ensure accuracy, consistency and comparability of carbon footprint information at both the organization and product levels. The ISO standards governing carbon footprint analysis and measurement are: ISO 14064-1:2018, a standard that provides guidelines for the organization in quantifying and reporting company-wide GHG emissions and removals; ISO 14064-2:2019, which provides project-level specifications and guidance for quantifying, monitoring, and reporting GHG emission reductions or removal improvements. It is relevant to specific projects that aim to reduce or offset GHG emissions; ISO 14067:2018, which focuses on quantifying the carbon footprint of products. It provides requirements and guidelines for accurately measuring and reporting the environmental impact related to greenhouse gas emissions associated with a product throughout its life cycle; ISO 14021:2016, although not specifically focused on carbon footprint, this standard provides guidelines on the use of stand-alone environmental claims, enabling organizations to clearly and transparently communicate the environmental performance of their products. Carbon footprint of organization and carbon accounting Organization carbon footprint, or corporate carbon footprint, represents the total amount of greenhouse gases (GHGs) emitted directly or indirectly by an organization during a specific period, usually measured in tons of carbon dioxide equivalent (CO2e). This measure provides an overall picture of the greenhouse gas emissions associated with the organization’s activities, considering the entire life cycle of its operations. To conduct a proper analysis of an organization’s carbon footprint, it is necessary to integrate carbon accounting processes: methodologies to account for and quantify emissions, based on the international GHG protocol, which divides greenhouse gases produced by an organization into three categories: Scope 1, or direct emissions, from sources owned or controlled by the company. An example of direct emissions is natural gas, fuel, or emissions from combustion in boilers that the company produces during its business cycle; Scope 2, includes all indirect emissions from energy sources purchased or acquired by the company.An example of an indirect emission is electricity purchased from an external utility company. This second type of emission is very relevant to the design of a good carbon management strategy because it accounts for one-third of all global greenhouse gas emissions; Scope 3, includes all emissions resulting from activities from assets not owned or controlled by the organization but indirectly impacting its value chain. This type of emission also makes up a large portion of global greenhouse gas emissions. The EPA, the U.S. Environmental Protection Agency, has classified this type of emission into two categories: Upstream emissions, including all indirect emissions from activities pertaining to a so-called cradle-to-gate phase (E.g., purchased goods, upstream distribution of products, employee travel); Downstream emissions, i.e., all indirect emissions related to the stage at which products leave the company (E.g., downstream distribution of products, end-of-life treatment, processing). Carbon management: what benefits does it hold for businesses? Implementing carbon management strategies brings a number of benefits to businesses, including: Improved brand reputation: companies that adopt sustainable practices and demonstrate a real commitment to reducing carbon emissions often enjoy an improved corporate reputation. This can attract customers, investors, and consumers who are sensitive to environmental issues; Regulatory compliance: adherence to environmental regulations, including disclosure required by CSRD, which not only avoids legal penalties, but can also contribute to the company’s positioning as a leader in environmental compliance; Operational efficiency: well-designed carbon management strategies can lead to improvements in energy efficiency and resource management, reducing long-term operating costs; Market Access: as ESG compliance becomes an increasingly relevant criterion for consumers and investors, companies engaged in carbon management can access new markets and business opportunities. Implementing a carbon management strategy means not only carrying out and certifying the carbon footprint study, setting new reduction targets and intervening with offsets where it is not possible to reduce the emissions produced, but also communicating and thus sharing with the outside world all the efforts the company has made to limit its carbon footprint. An additional opportunity that
Communicating corporate sustainability: how to enhance your organization’s commitment
In recent decades, the importance of sustainability in business has become increasingly central to the global business landscape. Growing awareness regarding the environmental, social and economic impacts of business activities has prompted companies to redefine their strategies to adopt more sustainable practices. From this perspective, the importance of sustainability in business goes beyond mere compliance with environmental regulations; it becomes a strategic lever to innovate, grow sustainably, and contribute positively to the well-being of the communities in which businesses operate. A pivotal aspect of sustainability in the company is communication: on the one hand, it is necessary to identify useful tools to report on the actions implemented and the company’s ESG performance, and on the other hand, it is essential to share the information available both inside and outside the organization. The pillars of sustainable communication A sustainable company adopts strategies that take into account economic, social and environmental aspects in conducting its business. Adopting a sustainable approach means prioritizing a sustainable type of communication, i.e., one that is clear and consistent with corporate values, and aimed at establishing an effective trust relationship with stakeholders. Sustainable communication is not only about technical aspects, such as communicating to stakeholders about certifications and sustainability reporting documents adopted by the company, but is a real method of communicating any kind of information. The main characteristics that define the sustainable communication approach are: Transparency: an indispensable requirement for building trust with both stakeholders and end consumers; Clarity of language and balance: simple, understandable language is a prerequisite for making information accessible to all audiences; Appropriateness of information: information provided must always be appropriate and truthful, even in view of regulations about Greenwashing practices; Consistency: communication must be consistent with the business context and strategy; Consistency: the information shared must always be up-to-date; Integrated communication: this means choosing to adhere to and maintain principles pertaining to sustainable communication in all areas of the company, from dialogue with employees to providing information to stakeholders; Involvement: making the target audience participate in the information to be provided is a factor that makes the type of communication chosen by the company effective and clear. Communicating sustainably is in effect a strategic choice for the company from a business perspective. Corporate communication plan and esg consulting: two elements that coexist The corporate communication plan and ESG consulting, viz. strategic sustainability consulting, represent two interdependent and essential factors in the adoption of a sustainable approach in business. Strategic sustainability consulting, by assessing and integrating Environmental, Social and Governance factors into business operations, is a process that supports and guides companies to identify risks and opportunities related to these factors. The purpose of strategic sustainability consulting is to develop a strategy to improve sustainable performance: the set of best practices, behaviors, organizational and economic models oriented toward respect for the environment and society. Adopting a sustainable approach, through carrying out esg consulting and complying with regulatory requirements in terms of sustainable reporting, means making a strategic choice for the success of the company’s business: companies oriented in this way turn out to be more attractive in the eyes of investors and stakeholders. With a well-structured communication plan, it is possible to have a concrete answer to a number of questions, including: what are the company’s sustainability achievements? What concrete initiatives are being put in place to improve sustainable performance? What future approach is being taken to achieve certain goals in terms of the company’s social and environmental impact? This information does not pertain solely to the technical or financial side; it pertains to the company and corporate life as a whole. Choosing how to communicate corporate sustainability, what has been done, what has been achieved, and what the company still intends to do for the sustainable future must be an integral part of corporate strategy. Integrating and communicating sustainability with Tecno Doing strategic sustainability consulting with Tecno means helping your organization understand its sustainability performance and consider adopting an integrated (ESG-oriented) approach. From building the work team to implementing the operational plan, with Tecno every ESG factor pursued by the company is highlighted, examined, improved, and disseminated through a sustainability-oriented communication plan. This pathway makes it possible to significantly limit the risks from greenwashing and greenhushing by increasing the bond of trust between the company and stakeholders, investors and end users. Effectively communicate your company’s sustainability with us.
ERC Decree 2024: incentives for Renewable Energy Communities approved
In the context of evolving global energy dynamics, Renewable Energy Communities (RECs) emerge as key pillars for the transition to a more sustainable and efficient system. RECs are an innovative response to the challenges of energy production and distribution, aiming to transform the way people consume and share energy resources.The year 2024 represents a turning point for the energy sector in Italy. Proof of this is the issuance of the CER Decree sought by the Ministry of Environment and Energy Security (MASE) and approved by the European Commission. What are Renewable Energy Communities? Energy communities represent a form of association that can be formed among citizens, SMEs, businesses, municipalities, research and educational institutions, religious bodies, third sector entities, and associations. These are communities that are created with the intention of generating environmental, economic and social benefits both for the participants in this form of association and to the outside world. Among the benefits of establishing a Renewable Energy Community we can mention: Self-generation of energy from renewable sources; A lowering of energy costs for citizens and businesses; The emergence of new opportunities, including economic opportunities, for the area in which the energy community is established. The CER Decree, published on January 23, 2024, provides state incentives of a financial nature in favor of CASERs (including CERs) and shares self-generated energy. A challenge aimed at promoting concretely sustainable practices, capable of spreading innovative and inclusive energy distribution models, and achieving national and European decarbonization goals. CER Decree 2024: the state incentives Incentives under the ERC Decree are intended for CACERs (Self-Consumption Configurations for Renewable Energy Sharing) defined in paras. e), f) and (g) of Art. 2 of the Decree and are divided into two measures: Feed-in tariff incentive: a measure aimed at configurations throughout the country and consists of an incentive tariff on shared energy, with a maximum subsidizable power limit of 5 GW until December 31, 2027; Non-repayable grant (or PNRR grant): a financial support measure aimed at Renewable Energy Communities in municipalities under 5,000 inhabitants. This is a non-repayable grant that can cover up to 40 percent of the investment incurred in the creation of the Community, with a limit of at least 2 GW of eligible power until June 30, 2026. Both measures are cumulative; moreover, among the requirements mentioned in the ERC Decree necessary to access incentives is the “DNSH clause,” meaning that it must be demonstrated that the plants meet – by performance and environmental requirements – the Do Not Significant Harm (DNSH) principle. Renewable Energy Community Incentives: how to access them? To access the incentives, it is necessary to submit an application to GSE (Gestore dei Servizi Energetici) within 120 days after the installed systems become operational. The application must be accompanied by the necessary documentation for the verification of compliance with the requirements, taking into account the operating rules disseminated by the relevant bodies. Interested parties can also ask the GSE – on a voluntary basis – for a preliminary verification of project eligibility. In addition, The MASE suggests following specific steps, such as: Identify an area where to implement the facility and users to associate with connected to the same primary cabin; Establish the ERC with a Articles of Incorporation or Memorandum of Association, which has environmental, economic and social benefits as its predominant corporate purpose; Check in advance with the Energy Services Manager (GSE) whether the project is eligible for the incentive; Obtain permission to install and connect the system to the grid, to make it operational; Finally, apply for the incentive from the GSE. The ERC Decree seeks to actively involve the community in the management and use of renewable energy. This fosters a greater sense of environmental responsibility and enables people to actively participate in the energy transition. Feed-in tariff: the premium recognized on the share of shared energy The feed-in tariff incentive is provided for 20 years, characterized by a fixed and a variable portion, and includes surcharges for plants located in the North Central and North. The amount of the recognized premium depends on the power output of the plant and on calculations that consider the hourly zonal price of electricity (Annex 1 of the CER Decree). PNRR grant: what are the eligible expenses? The ERC Decree sets limits on the types of eligible expenses against which the grant can be received. In addition, there are investment ceilings. Specifically, eligible expenses relate to: Implementation of renewable energy systems; Supply and installation of storage systems; Purchase and installation of machinery, plant and equipment hardware and software; Construction work strictly necessary for the implementation of the intervention; Connection to the national power grid; Prefeasibility studies and necessary expenses for preliminary activities; Design, geological and geotechnical investigations; Construction management and safety; Technical and/or technical-administrative testing, consulting and/or technical-administrative support essential to project implementation. The last four items of expenses above are eligible for funding to the extent of not more than 10% of the amount eligible for funding. The maximum investment cost limits are: ▪ €1,500/kW, for systems up to 20 kW; ▪ €1,200/kW, for systems of more than 20 kW and up to 200 kW; ▪ €1,100/kW for power above 200 kW and up to 600 kW; ▪ €1,050/kW, for systems with a capacity of more than 600 kW and up to 1,000 kW. The importance of Renewable Energy Communities for a sustainable future Renewable energy communities promote the decentralization of energy production. Allowing communities to generate their own energy reduces dependence on traditional power plants and promotes a more equitable and resilient distribution of energy. Through the establishment of Communities, sustainability is promoted by involving people and the local area in an active and conscious way. With the use of renewable energy sources, it contributes to the reduction of greenhouse gas emissions, which are a major cause of climate change; this is how energy communities play a significant role in lowering the overall environmental impact. 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ESRS standards and corporate reporting: news for 2024
Awareness of the importance of sustainability in the way of doing business has been one of the focal points of European regulation on the subject for years. First and foremost to demonstrate this is the European Green Deal: a package of initiatives and legal reforms aimed at achieving climate neutrality by 2050. As part of the Green Deal, the European Commission responded to the climate crisis by issuing a new directive: directive no. 2464/2022, cd. Corporate Sustainability Reporting Directive (CSRD) on non-financial reporting requirements. The essential purpose of the directive was to expand the number of companies obliged to provide non-financial information about the socio-environmental impact of their business. A clear objective, made possible by the European Sustainability Reporting Standards (ESRS). Birth and dissemination of ESRS standards Assessing, measuring and reporting corporate performance from an ESG perspective means using conventional tools such as the Sustainability Report or the Sustainability Balance Sheet, the foundations of which are based on standards established by international bodies and organizations. Examples of these standards are the guidelines issued by the Global Reporting Initiative, or the Sustainability Accounting Standards Board’s criteria, or even the more recent ESRS standards. In preparation for the approval of the CSRD Directive, the European Commission adopted delegated regulations containing European standards useful for corporate sustainability reporting, namely the ESRS standards, to which all companies covered by the directive must refer. The goal of the European Commission is to create a system of rules and guidelines on sustainable practices and reporting requirements that are aligned and harmonized with standards set by international bodies (Example: Global Reporting Initiative Standards). ESRS standards are issued by the European Financial Reporting Advisory Group (EFRAG), an independent advisory body appointed as a technical advisor by the European Commission for the implementation of the principles contained in the directive. From the time when the CSRD directive comes into force, i.e., January 2024, EFRAG is required to periodically update the ESRS standards also and especially with reference to that part of the “industry” standards, thus specific to business activity performed. Structure of ESRS standards and enterprises involved The structure of ESRS standards issued by EFRAG is based on 12 main standards, which embrace ESG criteria broadly. The first two standards apply generically to all topics covered by the CSRD, while the others cover specific areas: ESRS 1, General Requirements. ESRS 2, General disclosures (Disclosure rules). ESRS E1, Climate Change. ESRS E2, Pollution. ESRS E3, Water and marine resources (Marine resources). ESRS E4, Biodiversity and ecosystems. ESRS E5, Resource use and circular economy. ESRS S1, Own workforce (Workers) ESRS S2, Workers in the value chain. ESRS S3, Affected communities. ESRS S4, Consumers and end-users. ESRS G1, Business conduct. The General Regulations and Disclosure Rules part of ESRS (ESRS 1 and 2) provides standard guidance on drafting and content rules related to the instruments used to report sustainability. Since these are general, cross-cutting standards, they are mandatory for all organizations affected by CSRD. In addition to outlining a regulatory framework that embraces the concept of sustainability in a broad sense, the CSRD directive and ESRS standards introduce the principle of dual materiality: companies affected by sustainable disclosure and reporting requirements are required to measure the impact that business activity has on society and the environment, and the impact that environmental changes may have on the company itself. Companies obliged to prepare the Sustainability Report, according to ESRS standards, under the CSRD are: Listed companies that were already subject to the Non-Financial Statement requirement; Large companies, i.e., with more than 250 employees, or a turnover > of 40 million euros, or a balance sheet of more than 20 million euros; SMEs, for which the obligations under the directive will apply from 2027 onward; Non-EU companies that have at least one subsidiary or branch in the EU territory, again from 2027 onward. For the first time in the European landscape, there is a significant increase in the number of companies required to inform investors, stakeholders and consumers about the environmental and social impact of their business in an accurate and standardized manner. Why rely on Tecno for sustainable reporting The apparatus of information and reporting requirements defined by the CSRD are binding only on large companies, at least for the next two years. Although regulatory compliance does not directly affect medium-sized companies and SMEs, from an integrated sustainability perspective it is always convenient to prepare Sustainability Reports or Sustainability Reports. Having a sustainable approach is, by now, a characteristic of primary interest that investors and stakeholders have in the companies they target. At Tecno, we have been committed to promoting and disseminating a sustainable business model for 25 years. Learn about our sustainable reporting system.
Gender equality certification and SME incentives 2024
Equal opportunity and gender equality policies in business are a key pillar in building a fair, inclusive and sustainable working environment. With a view to sustainability, understood as the adoption of management and organizational models that are attentive to both the environment and society, principles such as promoting diversity and inclusion, pursuing gender equality policies and reducing the gender gap become an integral part of doing business. The Certification System and its function The Gender Equality Certification System is an intervention present within the National Recovery and Resilience Plan (NRP), desired by the Equal Opportunity Department of the Prime Minister’s Office. It is a set of initiatives aimed at promoting and supporting companies in adopting equal opportunity policies and reducing the gender gap. The goal is to promote the inclusion of women in the labor market and ensure the principle of gender equality, elements that are increasingly present in business settings geared toward social and economic progress. The National Recovery and Resilience Plan, together with the National Gender Equality Strategy 2021/2025, outlines a state willingness to incentivize companies to obtain Gender Equality Certification and to reduce the gender gap. In fact, the Plan includes financial support measures for SMEs that adopt inclusive business policies. Specifically, the NRP has allocated 10 million for the costs of technical assistance and issuance of Gender Equality Certification. While not mandatory, Gender Equality Certification represents a company’s willingness to undertake strategic and value-driven choices geared toward the inclusion and practical application of ESG factors within its management models; equal opportunity is fully part of the Environmental, Social and Governance factors that guide companies’ sustainable choices. Gender Equality Certification and Benchmark KPIs. The practice and guidelines on the basis of which the process for obtaining Gender Equality Certification is structured have been outlined by UNI, the Italian standards body, within the UNI/PdR 125:2022 policy document. This document summarizes the KPIs (Key Performance Indicators), which are the performance indicators against which to monitor six focus areas: Culture and Strategy; Governance; HR processes; Opportunities for growth and inclusion of women in business; Pay equity by gender; Parenting protection and work-life balance. Monitoring the above areas and ensuring that their employees have an organizational model that respects the values of Corporate Social Responsibility as much as possible enables companies to achieve numerous benefits, including overcoming management biases (errors or distortions in the management model) present within the organization. Identifying a management bias or gap within one’s organizational and governance process is not an easy process, and this is with reference to both small and large companies. For this reason, anintegrated analysis of business processes from a sustainable and equal opportunityperspective should be conducted. 2024 SME Grants and Equal Opportunity Certification From Dec. 6, 2023, and until March 28, 2024, it is possible to access Unioncamere incentives for companies and SMEs that adopt the process of obtaining Equal Opportunity Certification. There are two types of grants for which you can apply: Grants for services to assist SMEs in the process toward Certification; Grants for Gender Equality Certification issuance services, based on the requirements set forth in UNI/PdR 125:2022. For the first type of services, i.e., support services, there are: Up to 1,639.34 euros, for up to 4 days of assistance in analyzing business processes, monitoring target areas, and everything that falls under gender equality consulting; Up to 409.84 euros for one day of assistance in verifying the compliance of the Management System adopted by the company with UNI/PdR 125:2022 requirements. For the second category of services, related to the issuance of Certification, the company is required to request a quote from the Certification Body about the cost of issuance, and then apply for and receive the fee directly from the chosen Body. Companies intending to apply for Equal Opportunity Certification incentives are required to conduct a pre-screening on the Unioncamere portal, which will have a self-assessment value. Promoting equal opportunities and attracting talent to the company Promoting equal opportunity in business is a key factor in building a healthy, meritocratic and progress-oriented work climate. From an Employee Branding point of view, companies holding a Gender Equality Certification deliver to potential candidates a corporate image that is reliable and concretely committed to ESG criteria; an element, this, that generates benefits on brand reputation for potential candidates and young talents. Equal opportunity policies, possession of Gender Equality Certification and the way these values are communicated externally create a positive business climate; factors that increase the level of employee engagement and well-being. Gender equality counseling: it’s easier with Tecno Obtaining gender equality counseling represents a commitment that companies concretely choose to make to the pursuit of corporate sustainability goals, with a view to ESG and social and economic progress. At Tecno, we support companies in implementing a business paradigm in which gender equality principles are integrated into business objectives, structuring customized and transparent sustainability pathways. The Gender Equality Certification pathway with Tecno enables the reduction of the gender gap within business processes through the practical adoption of a policy to support inclusiveness. Take advantage of our expert consultants to obtain Gender Equality Certification and compete for important business benefits.
