Brussels considers major reversal on green reporting rules
A rule requiring companies to measure and report the environmental damage they cause is under threat due to the European Union's deregulation efforts, News.Az reports citing Politico.
A draft of the upcoming “omnibus” simplification legislation circulated to commissioners by European Commission President Ursula von der Leyen’s team scraps a principle known as "double materiality" in the EU’s new Corporate Sustainability Reporting Directive (CSRD), two of the officials said. All sources were granted anonymity to discuss sensitive internal issues.
Double materiality is a central concept of the European Green Deal, meant to shift the paradigm on green corporate regulation. It requires companies to consider the damage they are doing to the planet, not just the risks climate change poses to their financial health, as in more traditional sustainability reporting standards.
The CSRD is one of four pieces of recently passed green legislation targeted for simplification in the omnibus bill, part of von der Leyen’s promise to reduce administrative burdens for companies.
But there are concerns at the highest level within the Commission that red-tape slashing efforts are going too far, the three people said.
One of the officials said there is a “super big fight” ongoing. As a result, the legislative proposal has not yet been sent to the Commission’s specialist departments for checking — an unusual delay given the bill is meant to be presented next Wednesday.
“It’s going to be an ugly text, but we’re [doing] our best to save the essentials,” the official said. They added that the draft that targeted double materiality was circulated on Thursday.
The second official could only confirm that the draft was circulated this week. “The atmosphere is tense,” they said.
One of the officials said that the EU’s climate and competition chief, Teresa Ribera, had requested the draft not be sent to services until the issue is resolved.
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