{"id":13150,"date":"2025-02-28T09:50:13","date_gmt":"2025-02-28T09:50:13","guid":{"rendered":"https:\/\/axevera.com\/?p=13150"},"modified":"2025-02-28T09:52:58","modified_gmt":"2025-02-28T09:52:58","slug":"simplification-of-csrd-csddd-and-cbam","status":"publish","type":"post","link":"https:\/\/axevera.com\/en\/2025\/02\/28\/simplification-of-csrd-csddd-and-cbam\/","title":{"rendered":"Simplification of CSRD , CSDDD, and CBAM"},"content":{"rendered":"\n

The European Commission<\/strong> has recently presented a series of proposals to simplify the CSRD (Corporate Sustainability Reporting Directive)<\/strong>, CSDDD (Corporate Sustainability Due Diligence Directive)<\/strong>, EU Taxonomy<\/strong>, and CBAM (Carbon Border Adjustment Mechanism).<\/strong><\/p>\n\n\n\n

The main objective of these proposals is to reduce the complexity of EU requirements for all businesses, with a particular focus on SMEs and smaller large companies<\/strong>. The new regulatory framework will concentrate on larger companies, which have a greater impact on the climate and the environment, while ensuring that all businesses have access to sustainable financing for their decarbonization transition.<\/strong><\/p>\n\n\n\n

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CSRD: Scope Reduction and Greater Flexibility<\/h3>\n\n\n\n

1. Reduction in the Number of Companies Required to Report<\/h4>\n\n\n\n

One of the main changes concerns the 80% reduction in companies subject to reporting obligations<\/strong>. Only large companies with more than 1,000 employees<\/strong> and with a turnover exceeding \u20ac50 million<\/strong> or a balance sheet total of more than \u20ac25 million<\/strong> will be required to report sustainability information.<\/p>\n\n\n\n

Companies that are no longer subject to CSRD can adopt the VSME<\/strong>, the voluntary sustainability standard for SMEs and smaller large companies developed by EFRAG<\/strong>. This will allow small and medium-sized enterprises to choose a reporting approach that is proportionate to their size and operational capacity.<\/p>\n\n\n\n

2. Elimination of Sector-Specific Standards<\/h4>\n\n\n\n

To avoid an excessive burden of mandatory data, the Commission has decided not<\/strong> to introduce additional sector-specific standards<\/strong>, thus simplifying the reporting process and reducing compliance costs.<\/p>\n\n\n\n

3. No “Reasonable” Audit Review, Only Limited Assurance<\/h4>\n\n\n\n

To contain verification costs, only limited assurance<\/strong> will be required, without the possibility of an increase to a “reasonable<\/strong>” review in the future. This significantly reduces financial burdens for businesses.<\/p>\n\n\n\n

4. Reduction of Mandatory Data Points in ESRS<\/h4>\n\n\n\n

The European Sustainability Reporting Standards (ESRS)<\/strong> will be simplified with fewer mandatory data points, greater emphasis on quantitative data, and less descriptive narrative.<\/p>\n\n\n\n

5. Possible Postponement of the Second and Third Implementation Waves<\/h4>\n\n\n\n

To avoid unnecessary costs, the Commission has proposed to postpone<\/strong> the entry into force of the second and third waves of CSRD by two years<\/strong>, allowing companies more time to adapt.<\/p>\n\n\n\n