CSRD And The Omnibus Proposal – Implications For Fund Managers

The EU's law-making institutions have moved with impressive speed to approve a key element of the European Commission's (“Commission”) Omnibus Proposal, which postpones the application of the Corporate Sustainability Reporting Directive (“CSRD”) by two years. Following through on commitments outlined in the EU'sCompetitiveness Compass relating to the Commission's aim to reduce drastically the regulatory and administrative burden, the Omnibus Proposal significantly reduces the scope of the Corporate Sustainability Reporting Directive (“CSRD”) and aims to simplify sustainability reporting. While this will no doubt be welcomed by EU companies, it potentially poses some challenges for fund managers already dealing with significant data challenges in meeting their obligations under the Sustainable Finance Disclosure Regulation (“SFDR”) and the Taxonomy Regulation.