Simplifying the EU sustainability framework: priorities for the omnibus directive proposal

Objectives

The EU sustainability reporting framework consists of the SFDR (Sustainable Financial Disclosures Regulation), the Taxonomy Regulation, the CSRD (Corporate Sustainable Reporting Directive), the ESRS (European Sustainability Reporting Standards) and the CSDDD (Corporate Sustainability Due Diligence Directive). Many voices from business and politics have called for a simplification of this framework, which has been criticised for being too complex and burdensome. The von der Leyen Commission has proposed a significant simplification of this framework through an “omnibus package”.The session will seek to identify the priority objectives for simplification of this framework and to exchange comments on the omnibus package.

Points of discussion

• Should the EU sustainability reporting framework, which includes the SFDR, the Taxonomy Regulation, the CSRD, the ESRS and the CSDDD, be simplified and could it be simplified without losing significant information? What should be the concrete priority objectives of such a simplification (e.g. reducing the number of disclosures? Reduce the burden on companies, etc.)? Which pieces of legislation should be addressed as a matter of priority? 
• What are the main elements of the omnibus package? Do the different parts of this package respond to the current difficulties and challenges of the framework without losing useful and sustainable information? What needs to be changed?
• Given that reform of the existing framework will take time, what could be done in the meantime?