The Association for Financial Markets in Europe (AFME) welcomes today’s provisional agreement on the Sustainability Omnibus proposal amending the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD).
In particular, AFME welcomes a number of agreed simplifications including:
- Simplification of sustainability reporting, improving the focus on meaningful reporting and reducing reporting burdens;
- Streamlining reporting within corporate groups; and
- Simplification of transition planning and due diligence requirements.
Oliver Moullin, Managing Director for Sustainable Finance at AFME, commented: "Today’s agreement is a welcome step towards cutting complexity in EU sustainability reporting and due diligence requirements across the EU. Clear, workable rules will support the mobilisation of finance for the transition while minimising unnecessary regulatory burdens and supporting competitiveness.
“It is now crucial that the political agreement is implemented swiftly so companies gain the clarity they need as soon as possible.
“Notwithstanding these important simplification efforts, the EU’s sustainable finance framework is set to remain the most ambitious and comprehensive globally. Policy makers must continue with efforts to streamline regulation and support competitiveness, - including through the simplification of the European Sustainability Reporting Standards (ESRS), the review of EU Taxonomy reporting and, as acknowledged in the Omnibus agreement, reviewing banking legislation and supervisory requirements – to ensure it remains effective, proportionate and internationally competitive.”
AFME continues to call for a greater focus on simplification of EU financial services regulation – read more about AFME’s work on simplification here.
Background
- The European Commission adopted the Omnibus I proposal on 26 February to simplify CSRD and CSDDD.
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