How are the themes of the sustainability and digitization a board of directors? Assonymousalmost a hundred years old association di Italian joint stock company, a seminar organized in Milan asks how, with what risks, with what responsibilities and roles, with what skills and seniority, in general with what tools companies and stakeholders will be able to face these profound changes. A systemic approach would be needed, starting, it is hoped, from one update of the Consolidated Law on Finance.
Grieco: a revision of the TUF is urgently needed. Assonime promotes it
“The upcoming news on sustainability and digital transformation make the revision of the TUF even more urgent,” he said Patricia Grieco president of Assonime introducing the seminar for the presentation of the Report of the Working Group on "The evolution of the administrative body between sustainability and digital transformation". The Consolidated Act, introduced in 1998 with a legislative decree then amended several times, collects a large part of the primary legislation issued in recent decades and makes it compatible with the EU regulations on financial markets. “Assonymous” continues Grieco “he means be a promoter of a TUF revision project, with the help of the best academic and operational skills, in order to elaborate the main contents of a systematic reform to be offered in comparison with other stakeholders and with policy makers". At the seminar, also introduced by the new general manager Stephen Firpo and last November he took the baton by Stefano Micossi who held that role for 23 years, was attended by Piergaetano Marchetti, Victor Colao, Michele Chrysostom, Guido Ferrarini and Giovanna Galli.
Passera: SMEs must also consider these challenges as opportunities for growth
The group report coordinated by Corrado Passera, it was presented to the Assonime Council last November. The Group started its work last March with the aim of analyzing the impact of the new strategic challenges, sustainability and digitalisation, on the function of administration and on organizational structures of the company, with the consequent fallout in terms of composition and responsibilities of directors. It also analyzes the method on which the strategic management decisions and related responsibilities are based, identifying the applicable regulatory framework and any regulatory requirements. “It is necessary to consider sustainability and digitization as PM growth opportunitiesI,” Flounder said. “Small and medium-sized enterprises must promptly grasp the importance of this dual transformation so as not to be excluded from supply chains and also from the credit and financing market. Furthermore, the administrators of SMEs will have to evaluate the ESG responsibility profiles of their business on the one hand and the use of digital tools to support a more efficient and aware organization on the other".
The three parts of the report
La first part is dedicated to sustainability. The European regulatory framework and its next evolutions are outlining a new dimension for the large European company: from directive on due diligence in the field of environment and human rights, to the directive on sustainability reports, to the discipline on sustainability for financial intermediaries and banks. This evolution is already taking place for listed companies, in which boards of directors already have to identify the opportunities and risks so-called non-financial. Bad upcoming European disciplines they will introduce further factors of change, represented by due diligence obligations in the environmental and social fields, by the expansion of the fiduciary duties of directors, by the obligation to adopt a plan for the climate strategy, by strengthened transparency obligations on sustainability reporting.
Even if the obligations concern only the big business, with the exception of reporting obligations for listed SMEs, the changes are of interest even medium and small businesses as there is a growing demand for information on sustainability for then be able to access funding channels traditional and to value chains of large companies.
In second part addresses the issue of digitization, through a synthetic reconstruction of the technological tools and their possible use in company management. In particular, some indications are also provided the opportunities as well as the risks related to the use of new technologies in the exercise of administrative functions, which is connected with the effects on the duties and responsibilities of administrators.
La Part Three finally, it highlights the complementary link between the two evolutionary profiles and identifies some possible guidelines to facilitate the double transition towards sustainable and digital management.
