EU to Ease Green Reporting Rules for Businesses
The European Commission is planning to reduce the number of companies subject to EU sustainability reporting requirements as part of its efforts to cut red tape for businesses.
The Commission's draft proposal, obtained by Reuters, aims to simplify green regulations and boost the competitiveness of European industries. The move comes amid pressure from some EU member states, including Germany and France, to weaken the reporting rules, and calls from others, such as Spain, to maintain them as essential for upholding the EU's environmental and human rights values.
Under the draft proposal, only companies with over 1,000 employees and a net turnover exceeding €450 million would be required to disclose information about their environmental and social sustainability. Currently, the rules apply to firms with more than 250 employees and a €40 million turnover.
Additionally, the EU would abandon its plans to adopt sector-specific reporting standards by next June.
The draft also delays the EU's due diligence law (CSDDD), which requires large companies to identify and address human rights and environmental issues in their supply chains. Under the revised proposal, companies would only be required to assess their direct business partners and subsidiaries, excluding other subcontractors and suppliers.