The SDGs and Non-Financial Disclosures of Energy Companies: The Italian Experience

For some years, energy companies (ECs) have been increasingly pressured to address a broader set of social and environmental responsibilities that respond adequately to citizens' expectations, local and international regulatory frameworks, and transnational initiatives such as the Sustainable Development Goals (SDGs). Thus, ECs have invested considerable resources to reduce the environmental and social impact in their activities. This study aims to verify the measures that ECs have actually adopted by analyzing their social and sustainability reports. These reports constitute an official tool, and they are also supported by specific mandatory regulations such as EU Directive 2014/95, in which companies provide a non-financial disclosure aimed at demonstrating how their pursuit of the conditions of economic and financial equilibrium is increasingly and closely linked with the ability to assure sustainable development. This study considers eight major ECs operating in the Italian market. It compares the findings with two important foreign ECs that draw up a very structured and innovative report: the integrated report. The outcomes confirm that these ECs are making significant progress in the environmental and social spheres, although the path to full sustainable development is still unreached. The policy implications emerging from this study can contribute to this direction.