BIP Sustainable Development and Corporate Responsibility

More and more companies are investing in responsibility and sustainability actions in order to be, or at least appear to be, socially and environmentally responsible.

The motivations of companies for responsibility and sustainability actions vary: differentiation from competitors, attracting aware customers, participation in international value chains, pressure from stakeholders, strengthening reputation, regulatory compliance, etc.

Responsibility and sustainability actions are now a dominant business practice: Companies contribute to addressing environmental and social problems and at the same time strengthen their reputation, competitiveness and profitability.

The modern framework for developing business strategy and practice is structured in the ESG (Environment – Society – Governance) triptych. In this context, there are ESG management tools, the use of which by a company can guarantee that: the path that begins with the selection of the issues for which it will implement responsibility and sustainability actions, and ends with the publication of a sustainability report, will create shared value for the company itself and its stakeholders.

Moreover, EU rules require large companies and listed companies to publish regular reports on the social and environmental risks they face, and on how their activities impact people and  the environment.

The Corporate Sustainability Reporting Directive (CSRD) updates the rules concerning the social and environmental information that companies have to report. Companies subject to the CSRD will have to report according to European Sustainability Reporting Standards (ESRS).