The REP Wrap: Bumper week for disclosure rules
The debate over plans to revise the EU’s main sustainability rules continued to rage this week. According to Politico, MEPs have written to the European Commission asking whether president Ursula von der Leyen’s pledge to re-open the Corporate Sustainability Reporting Directive (CSRD), Corporate Sustainability Due Diligence Directive (CS3D) and Taxonomy would achieve its objective of reducing reporting burdens. The German government, on the other hand, has requested a two-year delay to the next phase of CSRD. In a letter to the Commission, it described the law as “overly extensive” and called for “rapid and tangible regulatory measures” to address concerns, especially for SMEs.
Meanwhile, EFRAG published guidance for SMEs wishing to voluntary align with CSRD in order to meet demand from lenders and clients. EFRAG plans to undertake a series of initiatives on the VSME in 2025, “including the issuance of support guides and educational material, outreaches, awareness raising events”.
Canada has added a year to the deadline for companies to report their value-chain emissions under incoming national requirements. The Canadian Sustainability Standards Board (CSSB) published its final rules for general sustainability and climate-related disclosures on Wednesday. Both sets of standards are based on those developed by the International Sustainability Standards Board but, while ISSB gives companies a year longer to report their Scope 3 emissions than their Scope 1 and 2 emissions, CSSB has agreed to provide three years of breathing space.
India’s market regulator has watered down value-chain reporting requirements under its new sustainability disclosures regime. SEBI said this week that such disclosures will now be voluntary from FY2025-26, and that instead of getting reports assured, firms can simply undertake an assessment to be developed by SEBI and its standards body. India’s largest 150 companies are required to report against the law for the first time in the 2025, for the previous financial year.
Securities regulators in China, India, Brazil, Malaysia, Saudi Arabia and South Africa are among 31 to have joined a new group hosted by IOSCO, which seeks to encourage emerging markets countries to adopt the ISSB’s standards.
The technical body appointed by the UK government to advise it on whether to adopt the ISSB’s standards has presented its final recommendations to the Secretary of State for Business and Trade this week. It recommended the endorsement of the first two IFRS Sustainability Disclosure Standards for use in the UK.