EU sustainability reporting simplifications

The simplification of the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) will not have come as a surprise to anyone close to the European Union (EU) institutions, where there has been considerable unease for some time about the breadth and depth of their requirements, and the reporting burden that they impose on companies at a time when the EU is anxious to promote economic growth. To some extent the seeds for the current endeavours were, if not sown, watered by Mario Draghi, the former president of the European Central Bank and widely credited for saving the euro during the financial crisis. In 2024, Mr Draghi reported ¹ to the European Commission on the competitiveness of European companies, highlighting that ambitions to be the world leader in sustainability came at a price for companies which could restrain growth.