The European Union (EU) has proposed changes to some of the requirements in the European Green Deal, as set out in the Omnibus Directive published recently.
The proposals are intended to reduce the number of companies required to publish details about their sustainability; to reduce the number of matters that companies will need to disclose; and to delay implementation by a year when many of these companies will be required to make the disclosures.
It will also reduce the number of companies required to audit the sustainability of their supply chain, and to limit the information required from SMEs.
Leading global professional accountancy body ACCA welcomes the intent behind the Omnibus Directive, which is intended to save cost, reduce the burden on smaller businesses, and make European companies more competitive.
ACCA has long supported the implementation of robust sustainability reporting frameworks and standards, and championed voluntary disclosures by companies around the world. ACCA is supporting accountants and businesses both within and outside of the EU with their understanding and compliance with the Corporate Sustainability Reporting Directive (CSRD).
Setting out an initial reaction to the Omnibus Directive, Mike Suffield, Director of ACCA's Policy and Insights, said:
“While we welcome the intent of the Directive, businesses need consistency, clarity, and certainty; the Omnibus Directive needs careful consideration to ensure that it delivers on these requirements, while acknowledging the need to drive climate action.”
The global accountancy body added that there is a need to maximise interoperability of sustainability reporting requirements in Europe with the IFRS Sustainability Disclosure Standards. It added it is vital that risks of the Omnibus Directive creating further divergence between the two reporting frameworks is minimised, to avoid greater friction to global markets.
Suffield further commented that:
“ACCA will be analysing the Omnibus Directive in greater detail to fully understand the impact on our global membership and our partners. We stand ready to assist the EU in their development and implementation of proposals, and to ensure globally consistent and clear sustainability reporting requirements for business.”
