Italian Securities Commission Consob report finds stronger ESG governance and growing climate-related disclosures among Italian listed companies

The Italian Securities Commission (Consob) has published its seventh report on non-financial reporting by Italian listed companies, pointing to greater transparency, increased stakeholder involvement in identifying material ESG topics, and deeper integration of sustainability into governance and strategy. The report also notes a gradual evolution in financial reporting to incorporate climate-change impacts, supported by a first-time review of climate information in financial statements of FTSE MIB issuers. In 2024, 150 companies with ordinary shares listed on Euronext Milan published a non-financial statement (DNF), including six on a voluntary basis, covering 72% of issuers (97% by total market capitalisation). All firms carried out a materiality analysis, with 73% considering stakeholder views (up from 70% in 2023 and 66% in 2022), while boards were involved after the materiality process in 72% of cases. Sustainability committees were in place at 82% of DNF reporters (75% in 2023), 81% disclosed sustainability objectives and 27% referenced climate-transition targets, and 27% linked material topics to UN Sustainable Development Goals, most often SDG 8 and SDG 13. On remuneration, 151 issuers integrated non-financial factors into CEOs’ variable pay (137 in 2023), with ESG-linked components averaging 18.8% of short-term variable pay and 20.6% of long-term variable pay. Consob will present the report’s findings via a webinar in the second half of September.