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by
AnhNguyen
- 2024년 12월 5일
The European Union (EU) is preparing to streamline its sustainability regulations through an Omnibus Simplification Package, expected to be published in February 2025. This initiative, announced by European Commission President Ursula von der Leyen, aims to ease the regulatory burden on businesses while retaining the essence of climate-focused legislation.
The EU’s sustainability framework, a cornerstone of the European Green Deal, includes three key directives: the EU Taxonomy, the Corporate Sustainability Reporting Directive (CSRD), and the Corporate Sustainability Due Diligence Directive (CSDDD). Together, they set reporting standards for greenhouse gas (GHG) emissions, environmental, social, and governance (ESG) actions, and supply chain accountability. However, businesses have expressed concerns over the complexity and costs associated with these regulations.
The CSRD, effective for large companies in 2025, mandates GHG reporting for fiscal year 2024. Reporting obligations for smaller businesses and non-EU entities are still in development. Meanwhile, the CSDDD introduces supply chain regulations, sparking resistance due to its stringent compliance requirements.
Political shifts have influenced the regulatory environment, with conservative parties gaining ground in the 2024 European Parliament elections by campaigning against perceived overregulation. The European People’s Party’s rise and pressure from business sectors have catalyzed efforts to simplify these laws.
Von der Leyen’s proposal seeks to consolidate the Taxonomy, CSRD, and CSDDD into a single regulation, aiming to reduce bureaucracy while maintaining climate goals. However, climate activists worry this simplification could dilute the original objectives of the regulations.
The upcoming Omnibus Simplification Package will balance easing business compliance with upholding the EU’s Net Zero 2050 commitment, ensuring that sustainability reporting remains integral to Europe’s carbon-neutral strategy and ESG objectives.
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