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The European Commission's recent proposals aim to reduce administrative burdens by at least 25% for businesses, with a 35% reduction target for SMEs, by streamlining sustainability reporting and related regulations. commission.europa.eu for the complete update....
Key Changes:
1. Corporate Sustainability Reporting Directive (CSRD):
- Scope Reduction: The CSRD will now apply only to large companies with over 1,000 employees and a turnover exceeding €450 million, exempting approximately 80% of previously covered firms.
- Reporting Delay: For companies still under the CSRD, reporting requirements are postponed by two years, now starting in 2028.
2. EU Taxonomy Regulation:
- Limited Application: Reporting obligations are confined to the largest companies, aligning with the CSRD's revised scope.
- Voluntary Reporting: Other large companies can choose to report voluntarily, facilitating access to sustainable finance without mandatory compliance.
- Partial Alignment Reporting: Companies can report on activities partially aligned with the EU Taxonomy, promoting gradual environmental transitions.
3. Corporate Sustainability Due Diligence Directive (CSDDD):
- Simplified Requirements: Due diligence focuses on direct business partners, reducing complexities and costs.
- SME Protections: Limits on information requests from large companies aim to prevent excessive burdens on SMEs.
Long-Term Targets
2030 Targets
The EU aims to achieve at least a 55% reduction in greenhouse gas emissions by 2030 compared to 1990 levels. This target is part of the European Green Deal and requires significant efforts across all sectors, including industry, transport, agriculture, and energy.
2050 Targets
By 2050, the EU aims to become the world's first climate-neutral continent, achieving net-zero greenhouse gas emissions. This long-term target underscores the commitment to a sustainable and resilient future, requiring sustained efforts from all sectors and member states.
Preparing for the Future
These deadlines and targets highlight the urgent need for businesses to integrate sustainability into their core operations. At ecoreko, we are dedicated to helping companies navigate these regulatory requirements and align with EU-wide sustainability goals. Our expertise ensures that your business is not only compliant but also a leader in sustainable practices..