ESG | CONSOB’s Call for Attention on climate disclosures in financial statements

On 20 December 2024, Consob issued a Call for Attention on climate disclosures reporting in financial statements, in analogy with the practice of other European Authorities, in view of the sustainability reporting obligations under Legislative Decree No. 125/2024. In particular, Consob carried out an in-depth study of a sample of issuers belonging to the FTSE-MIB from which, while noting a process of progressive adjustment of financial reporting, Consob found that significant areas for improvement remained. The Call for Attention encourages issuers to: (a) facilitate investor access to climate-related financial information; (b) ensure alignment between financial and sustainability disclosures; (c) provide clear explanations of the financial impact of climate factors. Consob recommended that issuers consider including climate-related disclosures in a dedicated note to the financial statements or making specific references to relevant sections. Furthermore, in light of the information that will have to be provided starting from the 2024 financial year in sustainability reports pursuant to Legislative Decree No. 125/2024 and the ESRS (European Sustainability Reporting Standard) principles on transition plans, Consob called on issuers to disclose relevant financial information allowing investors to assess the accounting impact of such plans. Additionally, Consob observed that descriptions of applied accounting standards in financial statements are often generic and do not fully reflect issuer-specific factors. Consob, therefore, urged issuers to provide tailored financial information on climate issues to enhance investor understanding of related analyses and uncertainties.

Newsletter n. 104 – February 2025