The REP Wrap: German chancellor pushes for CSRD delays
The German chancellor, Olaf Scholz, has called for the Corporate Sustainability Reporting Directive (CSRD) to be delayed by two years, and for its scope to be further reduced. In a letter to the head of the European Commission, Ursula von der Leyen, Scholz demanded a rise in CSRD’s employee and balance-sheet thresholds, so that fewer firms were covered by the obligations. It’s the latest sign that Germany will fight hard for the EU disclosure rules to be scaled back in 2025.
Morgan Stanley has become the latest banks to ditch the Glasgow Financial Alliance for Net Zero, better known as GFANZ, this week. The group convenes more than 700 investors, banks and service providers to help them decarbonise their lending and investments, but some of the biggest names have left recently amid pressure from the Republicans and the fossil-fuel industry in the US. CitiGroup, Bank of America and Goldman Sachs have also departed, prompting GFANZ to further relax its criteria for joining.
The EU’s Joint Research Council has published a paper on recent trends and developments for fossil fuel subsidies in Europe. Conducted in partnership with academics in The Netherlands and Sweden, the report explores methodological challenges in analysing fossil fuel subsidies. “Further reflection is needed on whether all public support which benefits fossil fuels should be treated the same way, or whether particular attention should be paid to FFS linked to a clear economic advantage provided to fossil fuels over other fuels and energy sources,” the authors said.
China is slated to sell more electric vehicles than cars with internal combustion engines for the first time in 2025, according to new estimates. The Financial Times reported that four sets of analysis from different banks and research houses all suggest China will surpass the Europe and North America this year, growing around 20% year-on-year and smashing its own national targets.
Japan Exchange Group has launched a search tool for companies listed on the Tokyo Stock Exchange, to help them with their sustainability disclosures. The platform allows issuers to see how their prime-listed peers are reporting on 38 ESG topics, and give them access to relevant disclosures in one place. It has been released as a beta version, to collect market feedback.