A società benefit is an Italian company that adds specific common benefit purposes to its articles under Law 208/2015 and names a person responsible for them. Each year it attaches an impact report to its financial statements, describing its objectives and actions, assessing its impact with an independent, credible and transparent external standard covering governance, workers, other stakeholders and the environment, and setting next year’s objectives. The report is published on its website.
What a società benefit is
A società benefit is an ordinary Italian company, such as an S.r.l. or S.p.A., that writes into its articles of association one or more specific purposes of common benefit alongside making a profit. It undertakes to run the business in a responsible, sustainable and transparent way towards people, communities, the environment and other stakeholders. Italy introduced the form with Law 208 of 28 December 2015, paragraphs 376 to 384, as the first country after the United States. It is a legal status, not a certification.
The person responsible
A società benefit must name one or more people responsible for the functions and tasks aimed at pursuing the common benefit, often called the impact manager. Directors have to balance the interests of shareholders with the common benefit purposes and the interests of those affected by the business.
What the annual impact report contains
Each year the company prepares a report on the pursuit of the common benefit, attached to the financial statements. It must contain:
- A description of the specific objectives, methods and actions the directors used to pursue the common benefit, and any circumstances that prevented or slowed it.
- An assessment of the impact generated, using an external assessment standard that meets the requirements of Annex 4 to the law and covers the areas in Annex 5.
- A section on the new objectives the company intends to pursue in the following year.
The external standard and the four areas
The law does not name a standard. Annex 4 says it must be comprehensive, developed by a body independent of the company, credible and transparent, with its criteria publicly available. Annex 5 lists the areas it must cover: corporate governance, workers, other stakeholders such as suppliers, communities and customers, and the environment. Many companies use the B Impact Assessment; others use the GRI Standards or similar frameworks, sometimes combined with the EU voluntary standard (VSME) for the environmental and workforce figures.
Publication and supervision
The report is published on the company’s website, where it has one, and sensitive data may be left out. A società benefit that does not pursue its common benefit purposes is subject to the rules on misleading advertising and the Consumer Code, enforced by the Italian Competition Authority (AGCM).
Società benefit and B Corp
The two are often confused. Società benefit is a legal form set by Italian law; B Corp is a private certification by B Lab, renewed every three years. A certified B Corp in Italy must become a società benefit, but a società benefit does not have to be a B Corp.
Doing it in Greener Ahead
Greener Ahead does not write impact reports or assess common benefit. Sustainability reporting in Greener Ahead prepares a VSME report with your environmental, workforce and business conduct figures, with the document behind each one, that you can use for the impact assessment, for €995 per year. Carbon accounting calculates your carbon footprint for €1,495 per year. Both have unlimited users and a free 14-day trial without a card. Check the pricing page for current details.
The impact report at a glance
The main rules of Law 208/2015.
| Rule | What it means |
|---|---|
| Who | Companies that adopt società benefit status in their articles |
| When | Every year, attached to the financial statements |
| Content | Objectives and actions, impact assessment, new objectives |
| Standard | External, comprehensive, independent, credible and transparent (Annex 4) |
| Areas | Governance, workers, other stakeholders, environment (Annex 5) |
| Publication | On the company website, sensitive data may be left out |
| Supervision | Italian Competition Authority, misleading advertising rules |
Before the report goes to the board
Check these points.
- Every common benefit purpose in the articles has an objective and a result.
- The external standard is named, with the score or assessment it gave.
- All four areas are covered, with figures where possible.
- Next year’s objectives are specific and measurable.
- The website version is ready for the day the financial statements are approved.
Sources and scope
These resources explain a preparation workflow. Check your selected standard and recipient requirements before sharing your report.
Joost ThissenFounder
