As reported by wnp.pl, the European Commission has announced significant changes regarding mandatory ESG reporting. With the new Omnibus package, over 80% of companies will be exempt from sustainability reporting requirements. The new regulations will apply only to large enterprises employing more than 1,000 people, significantly reducing bureaucracy and easing the burden on smaller businesses.

This change responds to demands from member states, including Germany, which called for a “revolution in simplifying ESG reporting.” The goal is to create clearer and smarter regulatory frameworks while reducing administrative burdens that impact European firms. The CSRD directive’s reporting obligations, initially set to expand gradually to more companies, will now be relaxed, with deadlines for businesses employing over 250 workers postponed by two years.

However, as experts cited by wnp.pl emphasize, while ESG reporting obligations for most firms are being lifted, the topic of sustainability remains crucial. Banks will still require borrowers to provide environmental and social information for financial risk assessments. Incentive mechanisms and restrictions have also been introduced – for example, financial institutions may lower credit margins for companies striving to achieve sustainability goals or impose higher costs on businesses engaged in high-emission activities.

According to Dr. Tomasz Zgoła from the Poznań Science and Technology Park, banks thoroughly analyze ESG aspects in their lending decisions. Questions cover climate risks, energy efficiency, and raw material sourcing. Additionally, financial institutions conduct their own research and audits to verify the information provided by companies.

The issue of ESG financing will also be addressed during the “Banks and ESG” debate at the European Economic Congress, taking place from April 23–25 in Katowice. This event will provide an opportunity to discuss future regulatory directions and challenges related to ESG reporting.

The European Commission’s decision to ease reporting requirements is an important step toward reducing bureaucracy and improving the competitiveness of European businesses. However, companies will still have to meet the financial sector’s expectations for transparency and commitment to sustainable development.

Source: https://www.wnp.pl/rynki/unia-europejska-zdejmuje-z-firm-ciezar-raportowania-esg-banki-pojda-jej-sladem,918388.html?utm_source=gravitec&utm_medium=push&utm_campaign=