This interview was published in Sustainability Index Magazine 2023.
How will the Code support businesses in Romania?
As part of its 2030 strategy for sustainable development overseen by a dedicated department within the government, Romania has recently launched one if its most ambitious projects yet: a national Sustainability Code. The Code and its guide for use by businesses in Romania have been recently finalized and will be followed by a reporting framework, which is currently in testing phase. Together, the two components will provide companies with a tool for unified and transparent reporting.
László Borbély, State Counsellor, and Gabriela Ciulacu Bițan, Senior Advisor at the Department for Sustainable Development, share more about why the Romanian Code of Sustainability was necessary and how it will support the business environment in the country.
1. The Romanian Code of Sustainability represents one of the most important and ambitious projects that the Department of Sustainable Development is currently implementing. How does the Code support companies in Romania?
László Borbély: As it is already quite well known in the business environment, non-financial reporting has been an obligation for companies with over 500 employees for several years. The new European directives make sustainability reporting an even more complex task that will gradually address an increasing number of entities. Besides the few companies that currently develop rigorous sustainability reports, many do not give enough importance to the subject. In addition, we can’t even know concretely what the situation is because right now the non-financial declarations that are submitted are not transparent.
We have the duty to stimulate the business environment to adapt to the new realities and not to be inferior to what is happening in the West in the area of sustainability reporting. That is why we created the Romanian Code of Sustainability and the reporting platform, which is free, both for entities that have the obligation to submit non-financial declarations/sustainability reports, and for those that wish to report voluntarily. In addition to the fact that the tool we developed ensures uniform and transparent reporting, it provides examples to guide users on how to comply with the reporting obligation.
2. The next period, until 2026, is marked by many new requirements at the European Union level regarding sustainability reporting. What actions will the Department for Sustainable Development carry out in 2023 to support the business environment in the implementation of these changes?
László Borbély: First of all, the entire approach that we started must also be seen in the context of the new regulations at the level of the European Union. In the process of creating the Romanian Code of Sustainability, we took into account all the relevant elements of the new directive, so that through the tool we created we meet the need of the business environment to adapt to the new requirements.
In addition to the final outcome of the consultation process, it was also very important that we were able to drive discussions on this topic and promote sustainability reporting to the public. We are also involved through our inter-institutional network in the transposition of the new CSRD directive, which allows us to keep the interaction between the business environment, NGOs and public institutions open, so that the implementation is done as smoothly as possible.
3. In June 2022, you presented the state of development of the Romanian Sustainability Code at an event organized at the Victoria Palace. What other actions have you taken on this project in the meantime?
Gabriela Ciulacu Bițan: The most important result we have achieved in the meantime is the finalization of the Romanian Sustainability Code and the Guide for its use. The two documents can be downloaded from the dedicated website: www.codsustenabilitate.gov.ro. We are also nearing the finalization of the reporting platform, in the sense that it is in the testing phase.
Since the implementation of the Code requires engagement from the business environment, at the end of last year we also had a promotion campaign under the slogan: „Choose the path of responsibility, use the Romanian Code of Sustainability!”, carried out on social networks (YouTube, LinkedIn, Google Display Newtork, newsletters) so that our message reaches as many entities as possible. We managed to promote the Sustainability Code at the local level as well, through the 8 regional debates held within the Sustainable Romania project. Recently, training sessions for the use of the Code took place, attended by 116 representatives, especially from the business environment.
In the short term, we aim to finalize the legal framework for the effective operationalization of the Code, and in the medium and long term we will continue with promotional actions and the provision of support for the business environment.
4. In what way will the Code support the analysis of a company’s sustainability performance and benchmarking with other companies in the industry?
Gabriela Ciulacu Bițan: Providing a benchmarking tool was also one of the goals with which we set out on the road to create the Romanian Sustainability Code. A big plus that the Code and the platform brings is the fact that reporting will be transparent and unified. The reports of all companies will have the same chapters and the same performance indicators.
The platform allows searching according to several filters, among which: company type, number of employees, field of activity, and most importantly, search and comparison according to each criterion or performance indicator. In the future, when companies have multiple reports and multi-year data series, we will implement the ability to compare results for a specific criterion/indicator from each year.
