Benefit corporation impact report: what it is and how to prepare it
Every benefit corporation must attach an annual report on the common benefit to its financial statements. Here is what it must contain, which standard to use, how to write it and what you risk if it stays on paper.
The impact report is the annual document in which a benefit corporation (società benefit) explains how it has pursued the common benefit stated in its articles of association. It is mandatory under Law 208/2015, must be attached to the financial statements and published on the website, and must assess impact using an external, independent standard. Here you will find what it must contain, how to prepare it step by step and why it pays to do it well.
What the impact report is
Benefit corporations are companies that, in addition to distributing profits, pursue one or more common benefit purposes for people, communities, local areas, the environment and other stakeholders. The rules are set out in paragraphs 376 to 384 of Article 1 of Law no. 208 of 28 December 2015, and apply to all company forms under the Italian Civil Code, from limited liability companies (Srl) to cooperatives.
Paragraph 382 requires the benefit corporation to prepare every year a report on the pursuit of the common benefit, to be attached to the financial statements. Paragraph 383 adds that the report must be published on the company’s website, if it has one. To protect beneficiaries, certain financial data may be omitted.
In practice it is called the impact report. It is not a marketing document: it is where the company demonstrates that the purposes written into its corporate object translate into measured targets, actions and results. It is usually prepared by the impact manager, i.e. the person or persons to whom, under paragraph 380, the company assigns the functions related to the common benefit.
What it must contain by law
The law does not set a graphic template or a length, but it specifies three mandatory parts:
| Part | What it contains | Reference |
|---|---|---|
| Targets and actions for the year | Specific targets, methods and actions implemented by the directors for the common benefit, with any circumstances that prevented or slowed them | Paragraph 382, letter a |
| Impact assessment | Measurement of the impact generated, carried out with an external assessment standard covering the four required areas | Paragraph 382, letter b, Annexes 4 and 5 |
| New targets | The targets the company intends to pursue in the following financial year | Paragraph 382, letter c |
The first point deserves attention: the law also asks you to explain what did not work. A report that lists only successes is less credible than one that acknowledges delays and identifies their causes.
The external assessment standard
Impact is not assessed using criteria invented by the company. Annex 4 of the law establishes that the standard must have four characteristics:
- comprehensive and detailed: it assesses the impact of the company and its actions on people, communities, local areas, the environment and other stakeholders;
- independent: it is developed by an organisation that is neither controlled by nor connected with the benefit corporation;
- credible: the organisation has the expertise to assess social and environmental impact and uses a scientific, multidisciplinary approach, possibly including a public consultation;
- transparent: the measurement criteria, weightings, who governs the organisation, the update process and the sources of funding are public, to rule out conflicts of interest.
One of the tools most used by benefit corporations is B Lab’s B Impact Assessment, the same one used for B Corp certification. Using it for the report does not mean being certified: the external standard is there to assess, not to obtain a label. Whichever tool you choose, check that it meets all four requirements and covers the areas in Annex 5.
Note the difference: the law requires an external standard, not external assurance. No rule requires an auditor or a body to certify the report, although an independent review strengthens its credibility.
The four areas to assess
Annex 5 lists the areas the assessment must always include. For each one you need data, not just descriptions:
| Area | What the law assesses | Examples of data to collect |
|---|---|---|
| Corporate governance | Transparency and accountability in pursuing the common benefit, stakeholder engagement | Purposes in the articles of association, role of the impact manager, public policies, meetings with stakeholders |
| Workers | Pay and benefits, training, growth, working environment, flexibility and safety | Training hours per employee, injuries, turnover, flexible contracts, welfare |
| Other stakeholders | Relationships with suppliers, the local area and community, volunteering, donations, local development | Share of purchases from local suppliers, volunteering hours, projects with local organisations |
| Environment | Impacts across the life cycle of products and services: resources, energy, raw materials, logistics, end of life | Energy consumption, greenhouse gas emissions, waste generated and sent for recovery, recycled materials |
Much of this data matches that of a VSME report. If your company already collects it for banks and clients, you do not have to start from scratch: you can use the same base for both documents, as we explain in the guide to the VSME ESG report.
How to prepare it, step by step
- Reread the purposes in your articles of association. The report must respond to them, one by one. If they are generic, now is the time to turn them into measurable commitments.
- Set targets with an indicator. For each purpose choose one or two indicators, a baseline value and an annual target.
- Collect data from documents. Utility bills for energy, waste forms, personnel records, supplier contracts. Note the source of every number.
- Apply the external standard. Complete the chosen questionnaire or template and keep evidence for your answers.
- Describe actions and obstacles. Explain what was done, with what resources, and what slowed the results.
- Write the new targets. They must be consistent with what emerged from the assessment.
- Attach to the financial statements and publish. The report accompanies the annual financial statements and must be put online on the company’s website.
For the environmental section, the longest task is often turning bills and waste forms into indicators. With Envify you can upload these documents as they are and get consumption and emissions already calculated, to include in the report together with the evidence.
Enforcement and penalties: the risk of staying on paper
Paragraph 384 establishes that a benefit corporation that does not pursue its common benefit purposes is subject to the rules on misleading advertising (Legislative Decree 145/2007) and to the Consumer Code (Legislative Decree 206/2005). Oversight lies with the Italian Competition Authority (AGCM).
In concrete terms, declaring yourself a benefit corporation without verifiable results can be treated as an unfair commercial practice. For these violations the Consumer Code provides administrative fines from 5,000 euros to 10 million euros. The AGCM has already regarded benefit corporation status as a factor that aggravates a lack of diligence in sustainability claims.
There is also an internal angle: under paragraph 381, if the directors fail to balance shareholders’ interests with the common benefit, they may be held liable for breach of their duties. And from 27 September 2026 the new European rules on environmental claims make generic statements even riskier: we cover this in greenwashing, what changes from 27 September.
The benefits of a well-prepared report
The report is an obligation, but it is also the most concrete tool for giving substance to benefit corporation status. A report with solid data helps you to:
- answer banks and clients with figures already prepared, without filling in every questionnaire from scratch;
- protect your reputation, because every public statement rests on a figure and a source;
- guide internal decisions, because targets and indicators make visible what works;
- speak clearly to the people deciding whether to work with you or for you.
If you want to give the report a broader structure, you can take inspiration from the table of contents of a sustainability report, while keeping the three mandatory parts required by law.
The impact report is mandatory for every benefit corporation: every year, attached to the financial statements and published on the website. It must describe targets, actions and obstacles, assess impact with an independent external standard across the four areas set by law and set new targets. A report without data exposes the company to AGCM scrutiny for misleading advertising.
