EU Proposes Major Rollback of Corporate Sustainability Reporting Rules
The European Commission's new bill aims to exempt 80% of companies from mandatory green reporting, sparking criticism over weakened climate accountability.
- The proposed Omnibus Simplification Package reduces the scope of the Corporate Sustainability Reporting Directive (CSRD) to only include companies with over 1,000 employees and specific financial thresholds.
- The Corporate Sustainability Due Diligence Directive (CSDDD) would also be scaled back, limiting supply chain accountability to direct suppliers and reducing monitoring frequency to once every five years.
- Despite initial drafts suggesting otherwise, the Taxonomy for Sustainable Activities remains largely unchanged, maintaining its classification system for green economic activities.
- The changes aim to cut administrative costs by €6.3 billion, but critics argue they undermine the EU's Green Deal goals and climate transparency.
- The bill requires approval from the European Parliament and the Council of the EU before becoming law, with debates expected over its impact on environmental and human rights standards.
Forbes 
POLITICO 
