Sustainability and due diligence reporting is much more than a regulatory requirement – through defining harmonized social and environmental standards, it is a crucial part of driving long-term sustainable progress in both our economy and society, as it fosters accountability, trust, and informed decision-making.
At Chiesi, we prioritize a shared-value-driven approach with a focus on the long term and building a better future for the next generation. Shared value is a business concept in which companies create economic value by addressing societal challenges and thereby generating value for society, linking business success with societal progress.
As a benefit corporation1, our legal structure mandates the commitment of the Board and senior management to managing and monitoring social and environmental impacts and to ensuring transparent reporting to our stakeholders, fully embedding shared value and sustainability into our strategy. In line with this, we annually share an Impact Report, a key requirement of the benefit corporation legal status.
Our message to policymakers is clear: reduce complexity, yes – but not ambition
On top of legal requirements, since 2017 we have been publishing a yearly sustainability report on a voluntary basis, adopting recognized international reporting standards such as GRI. Chiesi’s 2024 sustainability report, which still follows the GRI Standard, was a first effort to align with the Corporate Sustainability Reporting Directive (CSRD) disclosure requirements, even before they entered into force.
As the legislative process of the Omnibus Simplification Package on sustainability and due diligence reporting advances, we at Chiesi acknowledge the momentum towards reducing nonessential administrative burdens and enhancing legal clarity. Yet, simplification must not come at the cost of meaningful impact.
The Omnibus Simplification Package in question aims to streamline the CSRD and the Corporate Sustainability Due Diligence Directive (CSDDD). There are certain positive aspects to the proposed changes. We now must work together to ensure that these policies will continue to be fit for the intended purpose and achieve the fundamental goals they were created to address.
To this end, our message to policymakers is clear: reduce complexity, yes – but not ambition.
Steps should be taken to support and guide businesses to do better, rather than to change obligations essential for societal progress. One great example close to our hearts is sector-specific standards. Given the unique characteristics of the pharmaceutical industry and the growing demand for transparency from stakeholders and investors, such standards are needed for the proper impact of reporting in our sector. To prevent fragmentation internationally, we encourage the EU to lead this effort, maintaining its role as a global standard-setter in coordination with existing international standards.
The same ideas related to guidance and support can be extended to the application of the double materiality concept, including at the audit level, aligning interpretations between companies and auditors. This could be further reinforced by leveraging digital tools to support reporting exercises.
We believe that harmonized, transparent, and meaningful sustainability reporting is essential to building trust and delivering long-term value for all stakeholders.
These examples would reduce administrative burden and importantly – would not reduce the impact of the directives. At the same time, certain proposed changes risk seriously undermining not only the integrity of the sustainability reporting architecture, but also the EU’s climate goals more broadly, as enshrined in European Climate Law.
For example, the weakening of climate transition plan requirements in the initial Omnibus proposal – and later, the idea in the initial draft European Parliament JURI Committee report to make them voluntary – would considerably undermine the impact of reporting rules. Ensuring a robust requirement to implement climate transition plans reinforces the essential role of CSRD and CSDDD in guiding and accelerating the broader climate transition. Aligning requirements between the CSRD and CSDDD could be an excellent example of simplification, but removing the requirement altogether is a clear step back in delivering impactful change.
In addition, effective reporting depends on the visibility of your chain of activities. Because of this, the participation of SMEs, which make up the critical mass of our industrial fabric in Europe, is essential. Without the participation of all stakeholders, the reporting exercise and the achievement of value chain-related ambitious goals such as Net Zero targets, risks being undermined by missing data, delivering none of the potential benefits: neither the benchmarking of sustainability progress for companies, nor providing transparency for investors, nor advancing crucial societal goals.
Sustainability is not a compliance checkbox – it is an essential strategic imperative. We believe that harmonized, transparent, and meaningful sustainability reporting is essential to building trust and delivering long-term value for all stakeholders.
At Chiesi, we believe that business can – and must – be a force for good. Let’s ensure that the rules we amend today still enable that vision for tomorrow.
1Benefit Corporation is a legal form currently regulated in 35 US states, in Italy (Società Benefit) and France (Société à Mission). Benefit corporations are profit-seeking corporations that commit to creating public benefit and sustainable value in addition to generating profit. They are committed to considering the company’s impact on society and the environment in order to create long-term sustainable value for all stakeholders. A benefit corporation is, therefore, a traditional corporation with modified obligations, committing it to higher standards of purpose, accountability, and transparency.
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