ItaliaOggi conducted an interesting in-depth survey on ESG related matters and the role of legal professionals in assisting companies, especially regarding ESG due diligence in M&A transactions.

“The ESG reporting required by Directive 2022/2464 (the Corporate Sustainability Reporting Directive, the  ‘CSRD Directive’) is a useful tool for understanding the target company” explains Francesca Ricci, interviewed on this topic. “During the negotiation of the acquisition contract, representations and warranties relating to non-financial reporting are crucial and, in the event of breach, give rise to contractual liability.[…] Starting from 2026, sustainability reports may have a significant impact on M&A transactions involving large companies. The expectation is to include approximately 8,000 companies in Italy that, falling within the definition of ‘large enterprise’ under the CSRD Directive, will be required to prepare sustainability reporting, thus relying on this additional attractiveness factor in M&A.”

To read the full article (in italian), click here.