After the political agreement on the Corporate Sustainability Reporting Directive (CSRD) in the EU Council the previous week (see EUROPE 12898/17), the text was voted on Monday 28 February 2022, with a very small majority in the European Parliament’s Committee on Economic and Monetary Affairs. With 29 votes in favour, 25 against and 4 abstentions, MEPs from the EPP, ECR and ID groups clearly showed their disagreement. Similarly, in the amendments, the left-right divide was also felt.
Many amendments to the text proposed to delete the notion of “significant actual or potential adverse impacts”, which takes into account the possible consequences of companies on their environment. This principle, known as dual materiality, is of concern to some MEPs. “This legislation should encourage reporting entities to focus on providing certainty to investors and other stakeholders”, they amended.
Another major disagreement with the European Commission is the notion of proportionality. When Mairead McGuinness, Commissioner for Financial Services, Financial Stability and Capital Markets Union, presented the CSRD to the parliamentary committee in early February, many expressed concern about the administrative burden on SMEs (small and medium-sized enterprises) (see EUROPE 12888/6). Arguing that the Commission had “failed to propose a convincing impact assessment of the costs and benefits”, MEPs tried to lower the requirements for them and to adjust the timetable for a longer transition.
Finally, Greens/EFA and The Left MEPs, on the other hand, tried to increase reporting requirements on sustainability and respect for workers’ human rights, but to no avail. Similarly, they wanted to increase the requirements for companies considered to be in high-risk sectors. (Original version in French by Anne Damiani)