In February, the European Commission adopted an omnibus proposal to drastically reduce sustainability reporting requirements in the European Union. Initially, the focus was on delaying the implementation reporting requirements until 2028. Now that the “stop the clock” directive has been adopted, focus shifts to the broader reforms. In anticipation of the legislative process in the Parliament, the political parties have designated members to lead the debate in the Legal Affairs Committee, known as JURI.
To address the impacts of climate change and to reduce greenhouse gas emissions by businesses, the European Green Deal included a trilogy of sustainability directives. Adopted in 2020, the Taxonomy for Sustainable Activities created a classification system for business and investors to know what activities are considered green or climate friendly. In 2022, the EU adopted the Corporate Sustainability Reporting Directive to create requirements for businesses to report GHG emissions and other environmental, social, and governance actions. After much debate, in 2024, they finally adopted the Corporate Sustainability Due Diligence Directive, adding additional reporting requirements, as well as legal liability, for companies in relation to their value chain.
However, by the summer of 2024, the tide was shifting on green initiatives. As the financial obligations in the CSRD and CSDDD became clear, the business community began to push for reforms. During the 2024 European Parliament elections, the burden on businesses became a major theme. Campaigns blamed EU’s faltering economy on the burdens of the European Green Deal. The elections resulted in a shift to the right. The right leaning European People’s Party gained seats, while environmentally focused parties, including Renew Europe and Greens/European Free Alliance losing seats.
The reform process began almost immediately behind closed doors. In November 2024, Ursula von der Leyen, president of the European Commission, publicly announced her intention to revamp the Taxonomy, CSRD, and CSDDD to reduce the burden on businesses. The Omnibus Simplification Package was officially adopted by the Commission on February 26. Included in the proposal was a stand alone “stop the clock” directive to delay new sustainability reporting until 2028, for fiscal year 2027.
With the passage of the delay, the debate over broader directive to reduce reporting requirements has started. While deliberations of the Council will be mostly behind closed doors, the Parliament uses a more open legislative process. Typically, political parties will designate a representative in Parliament to head negotiations on their behalf.
In JURI, the committee responsible for the omnibus package, those designations have been made. The lead rapporteur will be MEP Jörgen Warborn of the EPP. Other political parties designated shadow reporters to participate in the process.
Abrial Gilbert-d’Halluin, Advisor to MEP Radan Kanev (EPP), made an excellent LinkedIn summary of the appointments. Some of the information below is based on his knowledge.
Jörgen Warborn
Lead rapporteur
European People’s Party – Sweden
The EPP’s push for a reduction in the CSRD and CSDDD will be in good hands with Warborn. He is described as pro-business and is known for his leadership in that arena. If you want a further indicator, his LinkedIn bio describes himself as “Fighting for freedom and entrepreneurship – against socialism and bureaucracy.”
Laura Wolters
Group of the Progressive Alliance of Socialists and Democrats in the European Parliament (S&D) – Netherlands
Wolters has been a leader in the development of sustainability reporting and environmental, social, and governance in the EU. She was the lead rapporteur for the CSDDD. She also served as the S&D shadow rapporteur on the CSRD.
Pascale Piera
Patriots for Europe Group (PfE) – France
Piera was elected to the European Parliament in 2024. She has made few public statements on the CSRD or the CSDDD. However, during the debate over the “stop the clock” directive, PfE proposed further delays and cuts. The proposals failed, but indicate the direction of the PtE will take in negotiations.
Tobiasz Bocheński
European Conservatives and Reformists Group (ECR) – Poland
Bocheński was also elected to the European Parliament in 2024. During the “stop the clock” vote, he proposed an amendment to delay the CSRD and CSDDD until 2050. In the official response by the ECR to the vote, he was quoted as saying:
“Europe is paralysed by its own bureaucracy. All serious economic indicators, including the Draghi report, show the continent falling behind the US and China. Europe’s competitiveness is declining and Brussels is responding with symbolic gestures instead of structural change.
“Real deregulation means getting rid of burdensome, unnecessary rules—not wrapping them up in new packaging or kicking the can down the road”, Bocheński continued. “The Green Deal’s regulatory machine has already caused enormous concern among business owners. What is needed is not delay, but deregulation…”
Pascal Canfin
Renew Europe Group (Renew) – France
Canfin is the former chair of the Environment, Climate, and Food Safety Committee, known as ENVI. He was the shadow rapporteur for Renew on the ENVI opinion on the CSRD.
In a LinkedIn post, Canfin stated “During the negotiations, I will remain faithful to a simple principle: yes to simplification, which will make the achievements of our ambitions easier and more effective. No to a reform that would strip the Directives of their substance and prevent us from achieving the objectives we have set for the European Union.”
Kira Marie Peter-Hansen
Group of the Greens/European Free Alliance (Green EFA) – Denmark
Peter-Hansen has been a strong voice for protecting the requirements of the CSRD and CSDDD. She was lead rapporteur for the Employment and Social Affairs Committee, known as EMPL, opinion on the CSRD.
Arash Saeidi
The Left group in the European Parliament (The Left) – France
Saeidi was elected to the Parliament in 2024. His background includes advocacy for trade unions and worker’s rights. He has been an advocate for stronger requirements in the CSDDD and CSRD. During the “stop the clock” debate, he moved to reject the delays.
JURI is the committee responsible for the passage of the omnibus, but other committees will issue opinions. In the Economic and Monetary Affairs committee, known as ECON, Janusz Lewandowski of the EPP has been appointed lead rapporteur. The procedure file indicates that the Foreign Affairs Committee; International Trade Committee; Employment and Social Affairs Committee; and the Environment, Climate, and Food Safety Committee will each issue opinions as well. However, no rapporteur designations have been designated for those committees yet.
The future of sustainability reporting in the European Union is still unclear. The delay to 2028 easily passed, however the level of reductions to reporting requirements in the CSRD and CSDDD will face a vigorous debate that will no be settled until fall of 2025.