Approval of the draft Law on Business Information on sustainability in the industrial sector

The new draft Law on Corporate Reporting on Sustainability, approved by the Council of Ministers, establishes a transparency framework designed to strengthen responsibility and commitment to sustainability in Spanish companies.

This law, which will apply to both large companies and some listed SMEs, follows the Corporate Sustainability Reporting Directive (CSRD) and proposes a standard, digital format for reporting environmental, social and governance (ESG) impact data, allowing for clearer comparison between companies across Europe.

For companies like ours, who seek to actively contribute to sustainable development in the business world, this law is an important step in communicating more clearly our commitment to the environment. This project promotes transparency and highlights the importance of sustainability within the industrial sector.

Facilities for SMEs and competitiveness in the market, staggered entry into force

A positive aspect is that the regulation incorporates a staggered system, allowing SMEs, small and medium-sized companies, more time to adapt and reduce their administrative burdens. The law introduces a verification system similar to that for the auditing of financial accounts and creates the Official Registry of Sustainability Information Verifiers, supervised by the Institute of Accounting and Auditing of Accounts (ICAC).

The implementation of these obligations will be gradual, starting in 2024 for large companies and extending to 2028 for subsidiaries in third countries. This approach recognizes the particularities of small and medium-sized companies, helping the implementation process to be gradual and appropriate to their capacity.

Corporate classification thresholds

In addition, a preliminary draft law was communicated that modifies the corporate size thresholds, adjusting them for inflation, which will allow certain medium-sized companies to opt for simplified corporate reporting models, thereby reducing administrative burdens.

The thresholds are adjusted to reflect inflation and other recent economic factors. The new thresholds are:

• Small companies: total assets up to €5 million and net turnover up to €10 million.
• Medium-sized companies: the upper limit is €25 million in assets and €50 million in annual revenues.
• Large companies: these thresholds are considered as minimums, 25 million in assets and 50 million in turnover.

In conclusion, this law seeks to boost and strengthen corporate social responsibility and transparency in companies, placing special emphasis on sustainability. By promoting comparable and verifiable reports at the European level, companies are encouraged to incorporate practices that represent and promote these values.

With this regulation, our industry is moving towards a business model in which sustainability and circular economy are fundamental pillars for growth. At SINTAC, we are committed to these principles, helping companies to adapt to the new standards of sustainability and responsibility.