Sustainability Reporting is the foundation of modern corporate transparency, going beyond traditional financial metrics. In Georgia, under the Law on Accounting, Reporting and Auditing, certain categories of enterprises (Category 1 entities and Public Interest Entities - PIEs) are required to submit a Management Report, which includes non-financial information on environmental and social issues. This means companies must disclose information regarding their impact on the environment, employees, human rights, and anti-corruption measures. This service helps companies prepare reports compliant with legislation and international standards (GRI, IFRS S1/S2), which is essential not only to avoid fines but also to gain investor trust.
What does this service cover?
The sustainability reporting service covers the full cycle from data collection to report submission:
- Legal Obligation Assessment: Determining whether your company falls into a category required by law to submit non-financial reporting (SARAS requirements).
- Materiality Assessment: Identifying key issues that are most significant to the company and its stakeholders.
- Data Collection System Setup: Establishing internal processes for accurate recording of environmental (energy, water, waste) and social (labor safety, training) data.
- Report Drafting: Preparing the textual part of the Management Report in accordance with legislation and best practices.
- Coordination with Audit: Collaborating with auditors to ensure alignment of non-financial information with financial statements.
Common Real-World Scenarios
Reporting services are critical for the following entities:
- Category 1 Enterprises: Large companies (assets > 50 million GEL, revenue > 100 million GEL, or employees > 250) legally required to submit a Management Report.
- Public Interest Entities (PIEs): Banks, insurance companies, and listed companies required to meet the highest transparency standards.
- Foreign Subsidiaries: Georgian members of international groups that need to provide data to headquarters for global sustainability reporting.
- Pre-IPO Preparation: Companies planning to list shares on a stock exchange wishing to demonstrate high corporate culture to investors.
Georgian Legal Framework
The main regulator is the Law of Georgia on Accounting, Reporting and Auditing. The law defines enterprise categories and their reporting obligations. The Management Report is submitted to the portal of the Service for Accounting, Reporting and Auditing Supervision (SARAS). The reporting must be prepared according to standards approximated to EU Directives. The Environmental Assessment Code is also relevant if the company's activities have a significant impact on the environment.
Process: How does a specialist work?
The process begins at the start of the year or the end of the reporting period. Specialists analyze the company's activities and determine what information must be disclosed. A working group is formed within the company (HR, lawyers, operations managers) to collect data. The lawyer prepares the report structure and content meeting SARAS requirements. The final document is verified by an auditor and uploaded to Reportal.ge.
Why Legal.ge?
Non-financial reporting is a new and complex challenge for many companies. An incorrectly or incompletely submitted report leads to fines and reputational damage. On Legal.ge, you will find experts experienced in working with SARAS standards. We will help you create a high-quality, transparent report that meets legal requirements and increases your business value in the eyes of investors.
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