EC publishes a “Competitiveness Compass” for the EU including simplification of sustainability reporting requirements
On 29 January 2025, the EC presented the EU “Competitiveness Compass”, its roadmap for the next five years.
It builds on the recommendations of the Draghi report, which was commissioned in autumn 2023 by Commission President Ursula von der Leyen and published in September 2024.
Implementation of the roadmap will begin on 26 February 2025 with the presentation by the European executive of the “Omnibus proposal”, which aims to simplify an initial package of European legislation in order to reduce the regulatory and administrative burden for companies.
The proposal is expected to affect sustainability reporting legislation, i.e. the Corporate Sustainability Reporting Directive (CSRD) and the Taxonomy Regulation, as well as the Corporate Sustainability Due Diligence Directive, which has not yet been transposed into all national European laws.
The EC says that the “unprecedented simplification effort” provided for in this Compass should reduce the reporting burden for companies by around 25%, and 35% for SMEs.
the EU “Competitiveness Compass”
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