EU to Simplify ESG Reporting Requirements

The European Commission plans to merge requirements under major ESG reporting regulations and directives (e.g., the EU Taxonomy Regulation, Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD)) into a single framework to reduce complexity and boost the EU's competitiveness. Announced by Commission President Ursula von der Leyen on November 8, 2024, this initiative responds to the Budapest Declaration’s call for a 25% reduction in reporting burdens by 2025 (see quotation from the announcement below).

The proposal seeks to address the challenges of overlapping ESG requirements and enhance cross-border trade within the EU.