Why a Sustainability Report Is a Key Tool

Why sustainability reporting matters: transparency, regulatory compliance, reputation and better strategic decisions.

Why a sustainability report is a key tool for companies

Companies have at their disposal an instrument that documents the measures they have taken to protect the environment — and that, at the same time, sets them apart from their competitors.

These are sustainability reports, which have gained weight in a global context defined by climate change and the energy transition. The point is straightforward: a company has to demonstrate that it is genuinely sustainable, not merely claim it.

From 1 January 2024, sustainability reports became mandatory for large public interest entities. From 1 January 2025, they will also be required of large companies not covered by the non-financial reporting directive — those with more than 250 employees, and/or turnover of €40 million, and/or €20 million in total assets.

What a sustainability report is

It is a document in which a company sets out all the actions that have a positive social, economic and environmental impact over a defined period. The report measures, on a scientific basis, the risks and challenges generated by the company's commercial activity and its effect on the planet's sustainable development.

The main advantages for a company

They demonstrate responsible management, and that the company is not greenwashing its public image.
They create long-term value.
They improve social reputation and corporate credibility.
They avoid potential penalties for failing to meet applicable regulations.
They build trust and transparency with stakeholders regarding sustainability policies and the quality and safety of the company's products and services.
They make companies more efficient, by showing which actions work and which do not — allowing initiatives to be prioritised, evaluated and aligned with the KPIs defined.

Why the report is an essential instrument

It documents the measures implemented and the results obtained, and identifies the environmental risks associated with the company's operations.
It proposes improvements to sustainability policies, making them more efficient and reducing the impact of the company's activity.
It sets future sustainability targets.
It is a significant channel of communication with the whole ecosystem around the business: customers, suppliers, shareholders, employees, public administration and other stakeholders.
It is an exercise in transparency towards society and a commitment to the environment.

Which regulation governs sustainability reporting in Spain?

The Corporate Sustainability Reporting Directive (CSRD) 2022/2464 has been in force in Spain since the beginning of the year. It amends Regulation (EU) No 537/2014 and Directives 2004/109/EC, 2006/43/EC and 2013/34/EU.

The key points of the regulation

The directive sets out how companies must report on how they conduct their activity. It also establishes the standardised criteria required, in line with the European Green Deal, the Sustainable Finance Agenda and the United Nations Sustainable Development Goals.

As a result, the 49,000 companies affected across Europe must describe their environmental, social and governance impact transparently in their sustainability reports.

How we prepare sustainability reports at GRUPO TREBOL ENERGIA

We prepare sustainability management reports so that our clients know precisely which of their activities contribute to the Sustainable Development Goals.

Specifically, we focus on:

Defining sustainability indicators.
Diagnosing the organisation.
Sustainability strategy.
Data collection and analysis on social and environmental matters.

At GRUPO TREBOL ENERGIA we bring broad experience in preparing corporate sustainability reports, and can support you through the process under the new regulatory requirements.