Summary: Simplification Of EU Sustainability Reporting

On 16 December, the European Parliament formally approved an agreement to simplify the sustainability reporting requirements of the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) (the New Legislation). This will provide clarity to businesses that have grappled with unclear reporting guidelines over months of negotiations, delays and announcements of differing proposed amendments to the regime.¹ The New Legislation largely follows the Omnibus I proposals with a few key changes; below we set out a comparison of the different regimes. In significantly narrowing the scope of reporting requirements, the New Legislation will provide welcome relief to those concerned about the administratively burdensome reporting requirements of the current regime. That said, sustainability disclosure and responsible business conduct remain core pillars of the European Green Deal and the package reflects a significant