EFAMA publishes recommendations for the first Omnibus package
EFAMA supports the Commission’s efforts to reduce the regulatory burden on European companies. However, to make this simplification a success, European lawmakers must better heed the concerns of European investors in the ongoing revisions to the Corporate Sustainability Due Diligence Directive (CSDDD) and, more significantly, the Corporate Sustainability Reporting Directive (CSRD).
In our view, sustainability reporting can be significantly simplified by focusing on meaningful sustainability-related information provided by corporates to investors. Only decision-relevant information is necessary. Any reductions in corporate reporting requirements should also be reflected in the forthcoming revision of the Sustainable Finance Disclosure Regulation (SFDR) to ensure regulatory consistency.
The following policy recommendations would help asset managers continue supporting both EU competitiveness and the green transition:
Reduce the ESRS standards to primarily include quantitative indicators and a minimum list of narrative disclosures, while ensuring maximum interoperability with ISSB standards. EFAMA is developing a reduced list of data points for ESRS, which we estimate would reduce reporting by 80%.
To address possible data gaps, a voluntary subset of the new ESRS could ensure comparability and prepare companies for a future transition to mandatory disclosure.
Provide legal clarity over the exclusion of the obligation for asset managers to report on clients’ Assets under Management (AuM) in the CSRD.
Ensure that missing sustainability reporting does not increase dependence on third-party ESG data providers.
Ilia Bekou, Policy Advisor at EFAMA, commented: “This Omnibus package is an opportunity to redefine sustainable finance to support EU competitiveness and continue contributing to the green transition. This set of proposed changes tothe CSRD ensures asset managers have access to crucial, investment-meaningful data, enabling better risk assessments and informed investment decisions. From an investor perspective, simplifying disclosure obligations can support EU competitiveness by driving innovation and sustainable growth across the EU economy in key technological sectors.”
Tanguy van de Werve, EFAMA Director General, commented: “The adoption of a holistic ESG data strategy in the context of the ESRS revision must place meaningful sustainability-related data for investors at its core, ensuring that the disclosed information is relevant and actionable. Simplifying disclosure obligations for reporting companies is equally essential to enhance comparability and reduce administrative burdens. By focusing on these priorities, we can establish a more efficient and effective sustainability reporting framework that serves the interests of all stakeholders and addresses competitiveness across the value chain.”
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Notes to Editors
Read our full omnibus policy paper here.
Read our response to EFRAG’s consultation on revising the ESRS here.
Learn more about the Omnibus package here.
For further information, please contact:
Hayley McEwen
Head of communications and member development
