Many corporate reporting managers will be giving a big sigh of relief as the European Parliament agreed last week to “Stop the clock” on corporate sustainability reporting.
The agreement will delay the implementation of key sustainability reporting and due diligence regulations, including the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD).
Delaying the reporting requirements of these directives gives time for a broader suite of amendments to the directives to be worked through. Known collectively as Omnibus 1 package, the amendments aim to significantly cut the reporting and regulatory burden on companies – particularly SMEs – by:
- Reducing the number of data points required
- Limiting due diligence at the direct business partner level
- Reducing scope – potentially removing 80% of companies from the reporting threshold
The announcement provides certainty and breathing space for companies globally, who may have had to report to the CSRD directly, or provide data for CSRD-bound partners.
But we can’t stop the clock on climate change, so EFRAG and the CSRD are now in the unenviable position of having to determine the balancing point between reports which are burdensome to private entities, and the level of information required to truthfully and transparently disclose on climate risks and climate transition plans.
The details of Australia’s mandatory climate reporting standards are still being finalised and as such will surely be impacted by the direction that the EU has taken, and of course the USA also.
Watch this space!
Find out more
Learn how and why Zooss support companies to embed environmental and social sustainability with traditional business planning and reporting:
- Sustainable Business Planning that connects to the work we live in
- About Zooss, our leadership team, our values and pillar
- Ready to start planning sustainably? Contact us.
Better Planning. Better Planet.