European provisions on sustainability reporting obligations covering environmental, social and governance (ESG) factors were transposed into national law by order no. 85/12.01.2024, published on January 26. As a result, commercial companies and their administrators will have a number of obligations, including the preparation of a report on the three aspects of ESG, which will be applied gradually according to certain criteria.

Public enterprises with more than 500 employees will be the first to report even for 2024. In 2025, the obligation will apply to companies that meet at least two of the following criteria: 50 employees, 4 million euros in net assets and 8 million euros in turnover, and in 2026 to all small businesses and listed media. The report will be submitted in the following year for each reporting year.

What is the impact on the real estate sector?

In the real estate sector, many large developers already prepare and publish sustainability reports. For them, the experience of past years can facilitate the transition to mandatory reporting. On the other hand, the reporting procedure can mean a complex process of collecting information from various operational streams or from tenants, systematizing it and adjusting the current policy or implementing a new policy in each specific case (decision-making, ecology, safety at work, knowing the clientele, etc.).

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The article is signed by Georgiana Belan, Senior Legal Coordinator at D&B David y Baias, and Diana-Beatrice Bortas, Legal Coordinator at D&B David y Baias.

Article supported by PwC Romania