CSRD: ECON proposal for higher thresholds and fewer obligations
The ECON Committee of the European Parliament has presented a proposal that could significantly redefine the scope of the Corporate Sustainability Reporting Directive (CSRD)The text suggests raising the minimum thresholds to 3.000 employees e 450 million euros in turnover, thus narrowing the group of obliged entities compared to the European Commission's proposal, which set the limit at 1.000 employees. A revision that raises concerns among analysts and institutions – including the European Central Bank, which continues to support lower thresholds (500 employees) in the name of transparency and comparability of ESG data.
The proposal also provides for a radical simplification of the European Sustainability Reporting Standards (ESRS), with a maximum of 100 mandatory information points (compared to the current 1.000 or more) and 50 volunteers. According to the rapporteur Janusz Lewandowski, the current information framework is "excessive and burdensome", particularly for medium-sized enterprises.
The package includes changes to the Corporate Sustainability Due Diligence Directive (CSDDD), with the elimination of the obligation to prepare climate transition plans and a rationalisation of the EU Taxonomy, to avoid duplication in reporting. Finally, the reintroduction of sectoral guidelines is proposed to facilitate business orientation.
The proposal is still in the preliminary stage and will be put to a vote, but it marks a clear direction: reduction of administrative burdens and greater selectivity, with an open question about the real effectiveness of such an approach in promoting sustainability.
CSRD: European companies do not perceive it as a brake on competitiveness
Contrary to popular narrative, the CSRD is not considered an obstacle to competitiveness by most European companies. A pan-European survey conducted by WeAreEurope in collaboration with HEC Paris e Copenhagen Business School highlights that only the 37% of companies already subject to the directive experience a decline in competitiveness compared to non-EU competitors.
Il 90% of the interviewed managers recognize in the CSRD an element of economic sovereignty and a factor in strengthening the European position in the global context. The survey – which involved over 1.000 companies – also reveals a level of satisfaction equal to 61%, while only the 7% calls for a radical revision of the legislation.
However, the changes proposed by the EU Commission through the reform Omnibus are not very convincing: only one company in four is in favor. The regulatory uncertainty is particularly worrying, as it risks further hindering compliance.
On the subject of minimum application thresholds, the majority of the companies interviewed are in favour of a limit of around 500 employees, compared to the upward hypotheses (1.000 or 3.000) at the centre of the parliamentary debate today.
PwC: ESG reporting still perceived as mere compliance
An analysis of PwC of 250 sustainability reports – 70% of which are voluntary – highlights how, for many companies, CSRD represents more of a formal requirement than a real tool for transformation.
A positive fact concerns the integration of ESG themes in the80% of corporate risk reports, a sign that sustainability is starting to be recognized as a component of systemic risk. However, the narrative of risks continues to prevail over that of opportunities: the reports document on average a 47% more negative impacts than positive ones.
The most frequently addressed topics are climate change, the workforce and corporate conduct. However, topics such as biodiversity, pollution and water resources remain marginal, especially in the technology and media sectors (less than 10% of companies).
On the climate front, approximately the 70% of companies declare emissions reduction targets, but transition plans are often incomplete or in the process of being defined. provident insurance on reporting remains limited: only one company obtained reasonable assurance on the entire report.
CBAM: exemption for 90% of importing companies
The European Parliament has approved the amendments to the Carbon Border Adjustment Mechanism (CBAM), raising the minimum application threshold to 50 tons. The measure exempts approximately 90% of importers (mainly SMEs and private operators), without compromising environmental coverage: the 99% of import-related emissions will remain subject to the mechanism.
The amendments aim to streamline procedures for CBAM registrants, refine emission calculation methods and strengthen controls to prevent abuse. The rapporteur Antonio DeCaro highlighted how the compromise lightens the administrative burden while maintaining the environmental integrity of the instrument.
CDP: 500 million green bond for sustainability and innovation
Cassa Depositi e Prestiti (CDP) placed his second green bonds, for an amount of 500 million euro and maturity at 8 years. The issue, intended for institutional investors, is part of the new CDP Green, Social and Sustainability Bond Framework updated December 2023.
The operation has attracted strong interest, with orders of €2,5 billion (5 times the offer), coming mainly from 73% from international investors, with a strong focus on operators attentive to ESG criteria. Reporting will be based on blockchain, to guarantee transparency and traceability of funds and environmental impacts.
Proceeds will go to projects in priority areas:
- renewable energy
- sustainable mobility
- energy efficiency
- The circular economy
The bond complies with the Green Bond Principles of ICMA and contributes to the achievement of the UN SDGs: 7 (clean energy), 9 (innovation), 11 (sustainable cities), 12 (responsible consumption), 13 (fight against climate change).
To learn more: https://esgnews.it/governance/cdp-lancia-il-suo-secondo-green-bond-da-500-mln-per-promuovere-linnovazione-tecnologica/
