Don't create more bureaucracy for European companies

Today, the Legal Affairs Committee will adopt its position on the reform of the Corporate Sustainability Reporting Directive (CSRD). The EPP Group has pushed for an exemption of small and medium-sized enterprises from heavy reporting obligations, leaving open the possibility for them to report on a voluntary basis if they deem it appropriate.

"In these difficult times caused by the pandemic, the energy crisis and the war in Ukraine, it is necessary to not further burden our European undertakings”, said Daniel Buda MEP, who negotiated the file on behalf of the EPP Group.

The new law will oblige certain companies to report annually on their contribution to climate protection goals, e.g. how much CO2 they are saving or what they are doing to prevent deforestation.

Concretely, the Legal Affairs Committee proposes that only companies with more than 250 employees fall under the reporting obligation, while creating the necessary legal framework for voluntary reporting by other legal entities. Larger companies that did not have to report before are given more time in the application.

“It is our goal to avoid red tape for European companies. In the trilogue negotiations, we will therefore advocate that the sustainability and the financial report must not be audited separately. Otherwise this will be very costly for affected undertakings. We will also push for further reporting exemptions for subsidiaries”, Buda said. “Above all, reporting standards must be achievable in terms of time and content”, he concluded.

The proposal for the CSRD will replace the current Non-Financial Reporting Directive.