EU's Net-Zero Reporting Rules Face Criticism from Siemens Energy CEO
German energy giant Siemens Energy has criticized the Corporate Sustainability Reporting Directive (CSRD), accusing it of creating an excessive number of sustainability metrics that hinder the competitiveness of European companies.
CEO Christian Bruch emphasized the disproportionate nature of the CSRD's requirements, particularly the need to report 1,000 data points. He called for a "radical simplification" to alleviate the burden.
Bruch's concerns align with growing sentiment among businesses and member states who view the CSRD as overly complex and burdensome. BusinessEurope has warned of the effort involved in providing "gigantic" amounts of data, while French officials have advocated for a two-year delay.
The discrepancy in sustainability regulations between the EU and the US is widening, as the Biden administration in the US has reversed ESG rules to boost economic growth. EU regulations are becoming a potential source of tension with Washington, with concerns that they could harm US businesses.
The European Commission is considering revisions to the CSRD following feedback from the industry. President Ursula von der Leyen has acknowledged the need to reduce complexity and cut red tape.
Siemens Energy's commentary comes as the company reported an 18.4% increase in revenues to €8.9 billion in the first quarter of 2023.