Simplification (before we get started…)

The Commission has formally proposed legislation to simplify a number of rules designed to address corporate responsibility for sustainability. This follows from the announcement in the autumn that the new Commission would address ‘green tape’ in light, inter alia, of the recommendations of the Draghi Report.

This ‘Omnibus’ proposal targets both the CSRD and the CSDDD and, if adopted, would significantly dilute the obligations on companies even before the framework agreed in May last year enters into application.

In parallel, the Commission has proposed a so-called ‘stop the clock’ directive which would delay the entry into application of the requirements. For the CSDDD the proposal is to give member states an additional year for implementation (and delay entry in to application in line with that). There are some other adjustments to account for proposals to adjust which companies would be required to comply.

These proposals will now be discussed by the institutions.