Albania has introduced a new sustainability reporting framework: Law No. 87/2026 which amends and expands the existing Law No. 25/2018 on Accounting and Financial Statements. It replaces the previous non-financial reporting with a full ESG framework, built around three pillars. The environmental pillar covers emissions and pollution. The social pillar deals with a company’s workforce, supply chain partners and customers. The governance pillar addresses ethics, anti-corruption and risk-management.
What’s Changing?
Sustainability reporting applies to large enterprises or economic entities that meet both of the following criteria:
- A yearly average of more than 1.000 employees
- An operating revenue above 45.000.000.000 ALL
The new law gives affected businesses a transitional period to adapt. Until reporting year 2027, large entities will continue to prepare the previous non-financial report. Starting from 2028, reporting under the new EU-aligned standards becomes mandatory.
The sustainability report should provide the entity’s business model and strategy, including its resilience to sustainability risks. It should also outline targets for 2030 and 2050, show yearly progress, and explain management’s role, the policies and the due diligence process. Finally, it should identify the main negative impacts, actions taken, the principal risks and the key performance indicators. Commercially sensitive information and developments may be left out of the sustainability report.
Impact for Businesses
The new law should improve how businesses handle their environmental and social impact. Auditors will give assurance on the reports, which makes unsupported green claims harder to make. It also brings Albanian reporting closer to EU rules, which matters for attracting EU investors and lenders. In addition, the law puts the value chain in focus: large companies will need data from their suppliers on emissions, waste and working conditions.
Eurofast Take
Eurofast can help companies in scope compare their current data and processes against the new requirements well ahead of 2028. We also help small and medium-sized suppliers prepare the sustainability data their larger clients will request, so they remain a preferred choice when suppliers are selected.