Romania’s New Sustainability Code: A Step Towards Enhanced Transparency and Sustainability

The recent implementation of HG 1.117/2023 marks a pivotal development in Romania’s approach to corporate sustainability and transparency. As of November 21, 2023, the Romanian Sustainability Code, introduced and published in the Official Monitor, offers an optional framework that can be adopted not only by companies obligated to submit non-financial declarations but also by those not currently required to do so.

The Romanian Sustainability Code, crafted by the General Secretariat of the Government, serves as a significant tool in the realm of sustainability reporting. Unlike traditional legislative codes, this methodology aims to broaden the scope of entities engaging in sustainability reporting, focusing on enhancing the transparency and comparability of these reports. This initiative addresses the growing need for clarity and uniformity in non-financial information, which is becoming increasingly important to stakeholders like investors and consumers.

This new normative act brings about a substantial shift in the sustainability reporting landscape. By simplifying and making the reporting process more transparent, it ensures that all reports are accessible on a unified platform, benefiting all interested parties. The methodology not only provides explicit guidance on what should be included in sustainability reports but also makes the process more comprehensible for companies.

The adoption of this methodology offers numerous advantages, including increased transparency, streamlined reporting processes, elevated visibility for reporting companies, and easier access to best practices in sustainability. Notably, the use of the Sustainability Code is free for both obligated entities and those choosing to participate voluntarily.

In conclusion, the Romanian Sustainability Code represents a crucial step in promoting sustainability and transparency within the Romanian business environment. By embracing this methodology, companies can demonstrate their commitment to sustainable development in a coherent and transparent manner, thereby enhancing stakeholder trust in their activities.

It’s important to note that starting in 2024, the non-financial declaration will be replaced with a sustainability report, and a broader range of companies will be required to submit these reports than currently.