The General Directorate of Sustainable Economy of the Ministry of Sustainable Economy, Productive Sectors, Trade and Labor, has presented the Registry of socially responsible Valencian entities which will come into force on March 7, 2023, according to the Decree 200/2022 of November 25, 2018, of the Consell, which regulates social responsibility in Valencian entities.
The decree is the instrument through which the Law 18/2018 of July 13 of the GVA that seeks to promote commitment to corporate social responsibility and sustainability through the creation of the Registry of Socially Responsible Valencian Entities (REVSR).
Entities that want to qualify as Socially Responsible Valencian Company, In addition to complying with current legal obligations, they must voluntarily integrate the principles and criteria of social responsibility and sustainability (SR+S) into their activities, structure, and strategy. These include the ethical, social and labor, environmental, and R&D+i aspects included in Law 18/2018.
Here's everything you need to know about the REVSR:
Objectives and benefits
The membership in the REVSR, It allows entities to measure their SR+S performance through a system of indicators and reflect it in their sustainability report. This report must be verified by a qualified third party.
The benefits of being awarded the status of a socially responsible Valencian entity, in addition to an improvement in the organization's reputation, extend to aspects such as:
- Public procurement: Being socially responsible will be considered as a tie-breaking criterion in the award, in accordance with the provisions of public sector contract legislation.
- Granting of public aid and subsidies: This will be a criterion for evaluation or weighting in the regulatory bases and calls for aid and subsidies. This will also include the implementation of sustainability practices.
- Display of seal or badge: Right to use and advertise in all their relationships the distinctive that accredits them as socially responsible entities.
- Tax benefitsIt is expected that regional tax regulations may establish tax benefits in the future. This has not yet been finalized.
How the Registry Works
Below is a summary of the main points to keep in mind:
1. Who can request qualification?
Self-employed workers, companies, and public and private organizations with workplaces, offices, or establishments in the Valencian Community.
2. What information should I provide?
The documents required to be a socially responsible entity are:
- Self-assessment according to the sustainability indicator system
- Sustainability Report
- Social verification audit report
3. What does self-assessment consist of?
In order to assess sustainability performance, the decree adds a requirement for a self-assessment based on the normatively established system of indicators.
These indicators are based on international reference models, seeking the highest common denominator among all and considering all dimensions of sustainability.
The decree establishes the existence of three groups of entities. Depending on the group, information related to ethical, social and labor, environmental, and R&D&I aspects must be provided.
This is the link to start the procedure when the decree comes into force: https://cindi.gva.es/es/web/economia/registre-entitats-valencianes-socialment-responsables
4. How to present the sustainability report
As the decree states, “Valencian entities must submit a social responsibility report that systematically collects their analytical results, in accordance with the criteria and values expressed in this decree."
To be valid, the memory must:
a) Be transparent and truthful; b) Include stakeholder opinions; c) Be verifiable, complete, relevant, and appropriate to the entity's organizational context; and d) Be accurate, neutral, comparable, and clear.
For this purpose, the report must be based on one of the generally accepted national or international models.
In the case of entities with fewer than 50 employees, they may transform the results of the self-assessment of the indicator system into a Social Responsibility Report. This report must be accompanied by documents proving the accuracy of its assessment or a statement of responsibility.
5. What does the social verification audit consist of?
According to the decree, the social verification audit “It constitutes a useful tool for the entity itself, since it helps with internal control and continuous improvement in management, increases the credibility of the information provided and strengthens its image and reputation.”
It consists of a qualified third party verifying compliance with the RS + S values.
This may be an individual, entity, or independent body with experience in auditing, verification, certification, or standardization and regulatory compliance.
The audit must be signed by at least one person with a higher education degree.
It's important to know that, in the case of self-employed workers, as well as organizations with fewer than 50 employees, the annual report will be equivalent to a social audit.
6. How the rating works
To achieve the qualification as a socially responsible Valencian entity, each entity must achieve the minimum scores established for the various indicators according to its group.
The report with a favorable or unfavorable result will be issued one month after the request.
Once the report is issued, a proposed resolution will be prepared and must be notified to the requesting entities so they can submit their objections.
The deadline for resolving qualification requests will be six months, and if they are not expressly resolved within this period, they will be deemed rejected.
Qualification as a socially responsible entity will require registration with the REVSR for a period of two years. This registration must be renewed biennially by submitting new documentation updated according to the current indicator system.
