Sustainability Report Verification

Standards and Frameworks for Sustainability Reporting

Law 11/2018 on Non-Financial Information (EINF)

This is the current standard governing the framework for the disclosure of non-financial information statements (EINF) in Spain. This law establishes the minimum content that must be reported and the scope of application for companies.

Corporate Sustainability Reporting Directive (CSRD) 2022/2464 EU

New EU legislation that requires all large companies to publish periodic reports on their environmental and social impacts.

The presentation of this data must follow the European Sustainability Reporting Standards (ESRS) adopted by the European Commission through delegated acts and are based on the technical advice of the European Financial Report Advisory Group (EFRAG). The Commission aims to create a series of standards grouped into three areas:

• General ESRS, applicable to all entities required to report, regardless of the nature of their activity.
• Sectoral ESRS, applicable to entities required to report belonging to a specific sector.
• Specific ESRS for SMEs.

Global Reporting Initiative (GRI)

This voluntary standard allows an organization to publicly declare its most significant impacts on the economy, the environment, and people (including impacts affecting human rights) and how it manages these impacts. This improves transparency and increases the accountability of the organization.

These standards are based on the expectations of responsible business conduct established in official intergovernmental instruments, such as the Guidelines of the Organisation for Economic Co-operation and Development (OECD) for Multinational Enterprises and the Guiding Principles on Business and Human Rights of the United Nations (UN), among others.

The independent verification carried out by Applus+ Certification ensures that a sustainability report complies with the principles and guidelines specified by the Global Reporting Initiative (GRI).

Am I Required to Submit a Sustainability Report?

The Law 11/2018 indicates that all companies with more than 250 employees or that are classified as public interest entities in accordance with audit legislation, or that meet at least one of the following conditions for two consecutive years as of the closing date, must submit a sustainability report:

• The total asset value exceeds 20,000,000 euros.
• The net annual turnover exceeds 40,000,000 euros.

A subsidiary company of a group is exempt from the obligation to submit the non-financial information statement (EINF) if it, along with its subsidiaries (if any), is included in the consolidated management report of another company, prepared in accordance with the content established in Article 2, Section 3 of the Law.

According to the new Directive (CSRD) 2022/2464 EU, the following deadlines are set:

• July 6, 2024: Deadline for transposition into the national laws of all EU Member States.
• From January 1, 2025: First report for companies already subject to the NFRD (for fiscal year 2024).
• From January 1, 2026: First report for large companies currently not subject to the NFRD but subject to Law 11/2018 (for fiscal year 2025).
• From January 1, 2027: First report for listed SMEs, small and non-complex credit institutions, and captive insurance companies (for fiscal year 2026).

Main Contents To Be Reported

The content of the non-financial information statement must include the following information about the company:

• General description of the group's business model (business model, risks, etc.)
• Description and results of the policies applied to the group
• Key risks related to the group's activities (products, services, etc.), including how they are managed.
• Key indicators of non-financial results that comply with the criteria of comparability, materiality, relevance, and reliability.

The new Directive foresees the inclusion of aspects such as:

• Double materiality approach
• Reporting of information on intangibles
• European Union Taxonomy Regulation
• Sustainable Finance Disclosure Regulation (SFDR)
• Disclosure Requirements under European Sustainability Reporting Standards (ESRS)

Benefits of Verifying Sustainability Reports

The verification of sustainability reports offers multiple benefits for companies:

• Enhances credibility and trust in sustainability reports.
• Ensures compliance with international standards and regulations.
• Increases transparency and accountability of the organization.
• Identifies areas for improvement in sustainability management.
• Facilitates decision-making based on verified data.

Why Verify with Applus+ Certification?

Applus+ Certification is an independent entity of recognized prestige whose objective is to help organizations achieve their commitment to continuous improvement. We analyze the needs of clients so that our verifiers, specialists in each sector, provide a service that offers the maximum value when assessing compliance in their organization.

We are a unique provider of verification and certification services with extensive experience in management systems, as well as verifications of greenhouse gases, carbon markets, SDG certification, DNSH validation, among others. Our international presence, extensive product portfolio, and accreditations allow us to provide a global, expert, and tailored service to meet your organization’s needs.