1. Setting the Scene – Sources and Overview
1.1 What are the main substantive ESG-related regulations and who is driving the regulatory agenda in your jurisdiction?
While there is no separate set of environmental, social and governance (“ESG”)-related regulations, the Italian legal framework includes several pieces of major legislation that relate to ESG sustainability and to Benefit Corporations.
There is a long legal tradition in Italy surrounding ESG issues, arising from the 1948 Constitution, which has a strong civic and human rights component. In particular, the recent constitutional reform (Constitutional Law 1/2022) amended Articles 9 and 41 of the Italian Constitution, establishing in particular that the Republic safeguards the environment, biodiversity and ecosystems “also in the interest of future generations”, and that private economic enterprise should be carried out in a manner that does not damage the environment or human health (see also question 1.4).
In 2021, Italy adopted its National Action Plan on Business and Human Rights for 2021–2026, undertaking the implementation of the 17 Sustainable Development Goals (“SDGs”) and encouraging companies to realise the goal of decent work for all, as set out in SDG 8 (Decent Work and Economic Growth) and to enhance the use of indicators of quality, sustainable development, equality and gender.
