It is expected that on February 26, 02, the European Commission will officially announce details of the "Omnibus" initiative. The goal of this initiative is to simplify regulations in sustainability reporting (according to CSRD), sustainability appraisal (CSDDD) and sustainability classification system (EU taxonomy).
The parties expect that this adjustment will help reduce compliance obligations for businesses while still ensuring the information needs of investors and stakeholders. At the same time, it also needs to avoid causing difficulties for companies that have pioneered implementation in recent years, as well as not reducing investment in small companies on the transformation journey.
Many comments from countries and organizations were made, in which the Sustainable Finance Advisory Committee of the German Federal Government proposed a number of specific issues as follows:
- Simplify reporting requirements: Reduce the number of data points required to be disclosed and only require meaningful information to minimize time and costs. This means prioritizing quality over quantity. Requirements should also create space for businesses to proactively disclose information that is relevant to the context of the specific industry and business.
- Specific example: The obligation to disclose scope 3 GHG emissions, which businesses have reported as difficult to collect data and costly, will be reviewed.
- Enhanced compatibility with international standards: The EU needs to ensure compatibility with international standards (e.g. GRI, IFRS,…) to increase comparability and connectivity with global reporting.
- Avoid confusion and uncertainty: Sanctions should be delayed until legal issues are thoroughly and comprehensively resolved, to avoid losing the transparency and credibility of the regulations.