DISMANTLING THE GREEN DEAL MAKES US MORE INSECURE AND LESS ATTRACTIVE TO THOSE WHO WANT TO INVEST IN EUROPE

Yesterday, an interesting opinion was published by the European Central Bank (no less) on the proposals contained in the package known as “Omnibus I” package published on 26 February, which, after consulting only a few companies, perhaps somewhat hastily and without conducting any impact assessment, intended to “simplify” laws, postpone, reduce the scope and limit the impact of regulations already adopted and in the process of being implemented on sustainability reporting and due diligence for companies. While welcoming the objective of simplifying the rules, the ECB warns that some proposals could significantly increase risks for investors, the economy and the EU's sustainability objectives. The issue is therefore one of economic security and risk reduction: the ECB calls for greater transparency and accountability for companies to ensure the financial stability and sustainability of the European economy.

This shows that this supposed “simplification” and dismantling of the Green Deal, far from making life easier for businesses if done in response to media hype and propaganda, could actually damage the EU's credibility and the competitiveness of businesses.

Here are the key points:

• Simplify, yes, but not at any cost: the European Central Bank (ECB) welcomes the goal of simplifying reporting and due diligence rules for companies, but warns that some proposals could increase risks for investors, the economy and the EU's sustainability goals.
• Do not reduce the number of companies affected too much: the ECB recommends limiting the reduction in the scope of companies covered by the Corporate Sustainability Reporting Directive (CSRD), suggesting that mandatory reporting rules be maintained for companies with 500 or more employees.
• Retain key data: the ECB stresses the importance of retaining data on climate change and biodiversity to assess and manage physical and transition risks.
• Sectoral guidelines: the ECB recommends adopting sectoral guidelines to foster a common approach to the implementation of sustainability reporting standards.
• Transparency is key: the ECB stresses that the availability of high-quality sustainability information is essential to ensure financial stability, conduct monetary policy and prevent investment decisions based on incomplete information.
• Do not undermine sustainability: the ECB warns that the proposals could limit stakeholders' access to important information, leading to unintended outcomes, including a reduction in the availability of sustainability information.