The German Chancellor, Olaf Scholz, re-launched the debate on simplifying administrative matters in a letter sent to the President of the European Commission, Ursula von der Leyen, on 2 January and published by Table Media. It calls on the European Commission to reduce reporting obligations for companies. He goes on to cite “the burdens associated with the Corporate Sustainability Reporting Directive (CSRD), the European taxonomy and the Corporate Sustainability Due Diligence Directive (CSDDD)”, which he feels are disproportionate.
In particular, Mr Scholz is calling on the Commission to postpone the reporting obligation set out in the CSRD directive by two years and to raise the thresholds relating to corporate turnover and the number of employees.
In the opinion of Axel Voss MEP (EPP, German), who was shadow rapporteur on the CSDDD, it is clear that changes need to be made to all three texts. However, he is sorry that the German Chancellor did not adopt this position at the time of their negotiations.
When interviewed by Agence Europe, he suggested ways of reducing bureaucracy: “This includes increasing thresholds and reducing reporting obligations with regard to large-scale CSRD. This should also lead to a harmonisation of how the CSDDD Directive is harmonised across Member States to bring it into line with other legislation affecting supply chains, such as the regulation pertaining to batteries”.
However, his colleague Lara Wolters (S&D, Dutch), who was lead rapporteur for the CSDDD, believes that it would be a mistake to go back on this text: “I don’t think it is helpful to change very recent legislation which companies are already starting to implement, rather than looking at what support measures and digitisation we can put in place to help”.
While the idea of impacting on the implementation timetable has already been raised, Ms Wolters believes that the current version already offers flexibility. “Re-discussing implementation debates will only create uncertainty, when there is already a very gradual phase-in up until 2029”, she told Agence Europe.
The Left group are also saying similar things, with Manon Aubry (French) as shadow rapporteur on the CSRD. “Instead of working to put in place these standards, which are essential to protect the environment and human rights, the European Commission’s priority is clear: accede to the demands of large multinationals, backed by the right and the far right”, said Manon Aubry.
The European Commission has already promised an ‘omnibus’ initiative to tackle reporting obligations, and has mentioned the CSRD, the CSDDD and the European taxonomy. In Budapest in November 2024, Ursula von der Leyen stated that there would be no question of changing the objective of the texts (see EUROPE 13521/2). (Original version in French by Léa Marchal)