A declaration backed by more than 300 organisations calls for the protection of core sustainable finance rules in the European Sustainability Reporting Standards (ESRS) because of concerns that the European Commission’s simplification of reporting requirements could weaken sustainability legislation.
As part of its simplification initiative, the Commission recently announced plans to adopt a voluntary sustainability reporting standard for small- and medium-size entities (SMEs), which are currently not obligated to report under the Corporate Sustainability Reporting Directive (CSRD).
Investors, businesses, and other organisations in a joint statement urged the Commission to safeguard the CSRD’s “double materiality” foundation.
The joint statement emphasises the importance of the CSRD and the Corporate Sustainability Due Diligence Directive (CSDDD) in driving resilience and a fair competitive playing field, a news release from the Global Reporting Initiative (GRI) said.
“CSRD/ESRS and CSDDD are essential for achieving the EU’s wider sustainability, growth, and competitiveness ambitions,” the joint statement said. “The signatories of this statement consider that regulatory simplification can be achieved without compromising on the substance of sustainability rules or their significant benefits for businesses across the EU.”
The joint statement said that any changes to the ESRS should not undermine the interoperability of global standards set by the GRI and the International Sustainability Standards Board.
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