ERT shares its thoughts on how to reduce the reporting burden in the EU

Sustainability is both a key driver for decision-making & a factor in securing competitive advantage for companies. ERT is deeply convinced of the value of disclosing information on sustainability performance so that investors and customers have access to comparable and decision-useful data. ERT companies are equally committed to achieving & meeting the objectives established in the Paris Climate Agreement.

However, there remain significant challenges stemming from the overlapping and often non-comparable regulatory framework in the EU. Sustainability reporting requirements seem to be too focused on compliance and formalities instead of highlighting tangible actions by preparers to improve sustainability. Too many individual data points are irrelevant to managing or steering the company and of limited value for users. Consequently, there is a high risk that the current legislation will fail to achieve its objectives.

This paper sets out the key issues and proposed policy remedies for reporting under:

1) the Sustainable Finance Regulatory Framework (mainly CSRD, EU Taxonomy, CS3D);

2) the regulatory burden stemming from implementation of the CBAM;

3) administrative & compliance efforts on corporate taxation.