EU Parliament to vote on sustainability reporting deadline
The European Parliament is expected to vote on delaying sustainability reporting today.
Members of the European Parliament (MEPs) voted on Tuesday to fast-track the stop-the-clock proposal which aims to delay application of environmental reporting and due diligence measures. On February of this year, the European Commission presented a simplification package for a regulatory landscape which facilitates competitiveness and reduces compliance cost.
Under the simplification package, the EU seeks to deepen its single market to facilitate business with differentiated phases scheduled depending on the size of the companies. Overall, the proposal for postponement of the regulatory barriers aim to prepare business and adapt the regulatory demands in a fair and equitable manner.
The proposed delay comes as a response to uncertain geopolitics, compelling countries to maintain flexibility and safeguard market competitiveness amid protectionist policies and threats to the global supply chains. Short term, expect MEPs to pass the proposal due to its broad endorsement in the parliament and the narrow opposition from green parties which lost 14 seats in the past election. If approved, the proposal would postpone reporting requirements up to 2028 depending on the size of the companies and would cut by 35% the administrative burden for small and medium size enterprises (SMEs) and 25% for bigger firms. Long-term, the simplified package is expected to unlock access to credit and investment within the EU for all size companies.
