On March 16th, the European Parliament’s Committee on Legal Affairs (JURI) voted in the European Parliament on its position on the Corporate Sustainability Reporting Directive (CSRD). The report was adopted by a broad majority and will lead to the beginning of the negotiations with the Council, to find a final agreement over the legal text of the CSRD.
While it is positive that the legislation is supported by the overwhelming majority of the Members of the European Parliament and included notable improvements, the scope of the mandatory framework is ineffective: Small and Mid-size Enterprises (SMEs) form over 99% of all companies in the Union and are excluded from the due diligence obligations. In response to this, the Economy for the Common Good (ECG) has signed a common press release coordinated by the Alliance for Corporate Transparency, presenting a detailed analysis of the document.
The negotiations will begin on March 28th, and the legal text will be completed in the upcoming months. The Economy for the Common Good calls on EU authorities to strengthen the scope of the Directive by including SMEs within the mandatory framework so they too have to adhere to the contents of the proposal.
For more information:
- Read the official press release by the EU Parliament
- Read the joint letter calling to broaden the scope of the EU CSRD also signed by the ECG
Image credits: @internetztube / unsplash
