In recent weeks, debates surrounding the European directives CSRD and CS3D have reached a major turning point. As calls for simplification and proposals for postponement multiply, these discussions reflect contrasting visions on how to reconcile economic transformation and climate imperatives within the framework of the Green Deal. Stay updated on the topic in our report on 28 January 2025!
France is asking Brussels to delay the entry into force of the duty of vigilance and the CSRD – 23/01/2025.
According to Bloomberg, the French government is preparing recommendations to slow down the implementation of the CSRD. Government spokesperson Sophie Primas described the directive as a "nightmare<" for businesses and criticized its costs as excessive in a statement on January 21, 2025.
France is requesting a two-year extension for the CSRD and a general simplification.
The French government has officially proposed to delay the entry into force of the CSRD by two years and to postpone sine die the directive on due diligence (CSDDD). This initiative aims to reduce regulatory complexity for businesses and encourage economic growth.
Key points:
- France wishes for the directive to apply only to companies with more than 5 000 employees and having a turnover exceeding 1,5 billion euros.
- Germany also requested, in a letter dated 17 December 2024 to Ursula von der Leyen, a significant reduction in the content of the CSRD and an additional two-year deadline.
- In parallel, they propose several concrete adjustments. They suggest limiting requirements for companies with fewer than 750 employees by making the publication of their sustainability report optional for two years.
You can find the full article here.
CSRD, omnibus: the battle for "simplification" rages in Brussels – 23/01/2025
While Germany, with Chancellor Olaf Scholz, calls for a two-year delay and a massive reduction of CSRD obligations, 160 unions, organizations, and business networks, including the Mouvement Impact France, defend the directive as a lever for competitiveness and economic resilience in the face of climate and social crises.
Some fear that pressures from European economic lobbies, including Medef and Afep, may push for a partial or total repeal of the directive. Among the risks mentioned: questioning double materiality, alignment with less ambitious ISSB standards, and the removal of social data related to workers in supply chains.
During a press conference on 21 January 2025, Polish Finance Minister Andrzej Domański confirmed that the Polish presidency prioritizes competitiveness and massive simplification of European regulations. He even mentioned the idea of an "omnibus fleet," aimed at reopening other legislations of the Green Deal beyond the CSRD.
The future of the CSRD remains suspended in a delicate balance between demands for simplification and pressures to dismantle the ambitions of the European Green Deal. The direction taken in the upcoming negotiations in Brussels will determine not only the future of the directive but also Europe's ability to maintain its climate and social commitments in the face of current crises.
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How is Bercy pressuring to unravel the European Green Deal – 27/01/2025?
France, through Éric Lombard, the Minister of Economy, is leading a campaign in Brussels to weaken the standards of the Green Deal, targeting key directives such as the CSRD (sustainability reporting) and the CS3D (duty of vigilance). This position opposes that of the Minister of Ecological Transition, Agnès Pannier-Runacher, who was still advocating for an ambitious maintenance of the Green Deal in November 2024.
The goal set by France and supported by Germany: to reduce regulatory constraints deemed too burdensome for businesses.
The proposals include:
- Drastic reduction of obligations: A tenfold decrease in reporting points, concentrating requirements on climate and excluding themes such as biodiversity or workers' rights.
- Raised thresholds: Limiting obligations to companies with more than 1 500 employees, thus excluding the majority of European businesses.
- Massive regulatory pause: Postponing certain legislations and revising 18 environmental and social regulations, including those on toxic products and industrial emissions.
These measures raise significant concerns among advocates of the Green Deal, who denounce a risk of massive regression. In particular, the removal of the obligation for companies to set climate transition plans aligned with the Paris Agreement could promote widespread greenwashing.
The omnibus legislation, which is expected to be presented on 26 February 2025, will be a decisive moment for the future of European climate and social policies, balancing sustainable ambitions and excessive simplification.
Article available here.
Mobilization around the CSRD: Calls for simplification, but not for dismantling – 22/01/2025
On 20 January 2025, twelve networks of French businesses and financiers, united under the banner #FuturCSRD, published a joint position paper to advocate for the CSRD. Although the European Commission, under the leadership of Ursula von der Leyen, is preparing an "omnibus legislation" aimed at simplifying these obligations, these stakeholders are calling for targeted adjustments without giving up on the initial ambitions. The networks, including Mouvement Impact France and B Lab France, support its crucial role in transforming business practices and strengthening their resilience in the face of climate crises.
Business networks advocate for simplifying standards to reduce their complexity for SMEs and mid-sized enterprises. Currently, listed companies must publish their reports starting from 2027, with a possibility of postponement until 2029. They also recommend prioritizing certain quantitative indicators to facilitate sector comparisons, while maintaining the principle of extraterritoriality, which allows non-European companies operating in the EU to be subject to the same requirements as European companies.
In parallel, they propose several concrete adjustments. They suggest limiting requirements for companies with fewer than 750 employees by making the publication of their sustainability report optional for two years. They call for a simplification of administrative procedures and clarification of audits to reduce implementation costs. Finally, they recommend postponing the audit obligation while advancing the requirements applicable to non-European companies.
Many organizations and companies have expressed their support. The C3D (College of Sustainable Development Directors) and companies like Ferrero, L'Occitane, and Primark have sent letters to the European Commission to defend the CSRD. Additionally, on 14 January, 160 NGOs and unions wrote to Ursula von der Leyen to request maintaining the original implementation schedule and avoiding any weakening of the directive's objectives.
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