France Also Calls for Postponement of Sustainability Reporting Regulations for SMEs

France has also requested a significant delay and some changes to the main European regulations on sustainability reporting and environmental due diligence introduced by the European Union, the CSRD and the CSDDD. The aim is to reduce the bureaucratic burden and simplify compliance obligations, especially for small and medium-sized enterprises.

The request is based on the loss of potential GDP caused by regulatory complexity and the new competitive reality influenced by the uncooperative policies of major global competitors. This initiative follows a similar stance taken by Germany.

Meanwhile, the European Commission is considering accepting these requests and paving the way for possible changes. However, many large companies have warned that relaxing these rules could generate regulatory uncertainty and jeopardize the significant investments already made to comply with the new provisions.

Regarding the CSRD, France, like Germany, has requested a postponement of the application of the rules for small companies

Among the most notable changes proposed by France is a request for an “indefinite postponement” of the implementation of the CSDDD, which establishes obligations for companies to identify, assess, prevent and mitigate negative impacts on people and the environment throughout their supply chains.

The issues addressed include child labor, slavery, pollution, emissions, deforestation and damage to ecosystems. Although adopted in May 2024, the law was significantly scaled back during the approval process, restricting the number of companies affected and postponing its full implementation.

France, already instrumental in narrowing the scope of the CSDDD to include only companies with more than 5,000 employees (from the original proposal of 500), has now doubled down by proposing even higher thresholds, namely to only include companies with more than 5,000 employees and revenues above €1.5 billion, along with other simplifications of the obligations envisaged.

Regarding the CSRD, France, like Germany, has requested a postponement of the application of the rules for small companies, which should start reporting next year, and the suspension of sector-specific reporting requirements. In addition, the French government proposes to reduce the obligations for medium-sized companies, applying only simplified rules similar to those foreseen for listed SMEs.

Finally, France suggested drastically easing CSRD reporting requirements by reducing the number of indicators required and focusing on climate goals. It also asked for clarification on the need for transition plans, specifying that these should not necessarily align with the Paris Agreement, but only benchmark corporate goals against those of the treaty.

__

(Featured image by Rodrigo Kugnharski via Unsplash)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in ESG NEWS. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.