The European Sustainable Investment Forum (Eurosif) published a response to the European Parliament Legal Affairs (JURI) committee’s position on the Omnibus simplification initiative amending the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD). Eurosif argues the proposed scope reductions would materially weaken comparable sustainability data for investors and limit the ability of sustainable finance rules to support industrial decarbonisation. Eurosif highlights a suggested 90% reduction in scope for CSRD and the EU Taxonomy, and warns that a CSRD “value chain cap” could prevent financial institutions from obtaining information needed for investment purposes unless information requests for investment are clearly exempted. On CSDDD, it welcomes retention of an obligation to adopt climate transition plans and the reinstatement of a risk-based approach to due diligence across supply chains, but questions the removal of the requirement to implement transition plans and notes the revised threshold would cut the number of in-scope companies by 70% to fewer than 1,000 across the EU. It also says limiting CSRD to around 3,000 large companies, combined with reliance on voluntary reporting based on VSME standards for out-of-scope companies above 250 employees, would create significant data gaps, and it supports developing credible voluntary standards as a limited subset of the European Sustainability Reporting Standards (ESRS). Eurosif calls on the co-legislators to address these issues in upcoming trilogue negotiations so the Omnibus package simplifies requirements without undermining investor access to decision-useful sustainability information.
Eurosif 2025-10-14
European Sustainable Investment Forum warns Parliament Omnibus position would slash CSRD and EU Taxonomy scope by 90% and narrow CSDDD requirements
Eurosif criticized the European Parliament Legal Affairs committee's stance on the Omnibus simplification initiative, arguing that reducing the scope of the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD) would weaken sustainability data for investors. Eurosif warns that a 90% scope reduction and a CSRD "value chain cap" could hinder financial institutions' access to necessary investment information. It urges co-legislators to address these concerns in trilogue negotiations to ensure the Omnibus package simplifies requirements without compromising investor access to critical sustainability information.