EUROLAB has published a position paper examining the changing sustainability regulations introduced by the European Commission and their impact on the business environment and Conformity Assessment Bodies (CABs).
The backdrop to this paper is the European Commission’s launch of two Omnibus simplification packages back in February. These packages are part of a strategy to bolster EU competitiveness by streamlining requirements under the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD) and the Taxonomy Regulation.
Key changes include reducing the number of companies within the CSRD’s scope by around 80%, focusing reporting obligations on larger undertakings with more than 1,000 employees and creating voluntary standards for smaller firms.
The commission aims to cut administrative burdens by 25% for all businesses and by as much as 35% for SMEs, with the intention of keeping European industry attractive and sustainable.
EUROLAB welcomes these initial steps, acknowledging that simplification and deregulation are vital, especially when it comes to Environmental, Social and Governance (ESG) requirements. It warns, however, that any additional regulatory burdens could undermine the profit margins and long-term financial stability of CABs.
EUROLAB is calling for future regulations to focus on building a robust culture of sustainability, allowing organisations to invest meaningfully in process improvements rather than administrative overheads.
Read the full paper on EUROLAB’s website.
