· 2 min read
illuminem summarises for you the essential news of the day. Read the full piece on ESG Today or enjoy below:
🗞️ Driving the news: The European Council has approved the European Commission’s "stop-the-clock" directive, delaying implementation of the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD
• This move is part of the wider Omnibus I package, aimed at easing regulatory burdens, particularly for SMEs
• The CSRD application will now be postponed by two years for non-reporting companies, and the CSDDD by one year
🔭 The context: Released in February, the Omnibus package proposes changes to several major EU green regulations, including CSRD, CSDDD, the Taxonomy Regulation, and CBAM
• The Commission aims to reduce sustainability reporting requirements by 25% overall, and 35% for SMEs
his includes trimming the scope of CSRD to only companies with over 1,000 employees and €50 million turnover, cutting around 80% of businesses from its remit
🌍 Why it matters for the planet: These delays and exemptions may significantly weaken the EU’s ESG leadership and slow progress on corporate transparency and environmental accountability
• While reducing red tape, they risk limiting investor and stakeholder access to crucial sustainability data
• Reduced frequency and scope of due diligence could also allow human rights and environmental risks to go undetected in supply chains
⏭️ What's next: The European Parliament is scheduled to vote on the “stop-the-clock” directive on 1 April
• If passed, it will provide companies with regulatory clarity but may face criticism from civil society and sustainability advocates
• Broader negotiations on the full Omnibus reforms will follow between the Council and Parliament
💬 One quote: “Today’s agreement is a first step on our decisive path to cut red tape and make the EU more competitive,” – Adam Szłapka, Minister for the European Union of Poland
📈 One stat: The proposed CSRD revision would remove 80% of companies from sustainability reporting obligations by narrowing its scope
See here detailed sustainability performance of companies like Unilever and Amazon
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