EU Updates - January

ESMA Consultation on Digital Tagging of ESRS Statements

The European Securities and Markets Authority (ESMA) has launched a public consultation on amending the European Single Electronic Format (ESEF) Regulatory Technical Standards (RTS). This proposal aims to digitize sustainability disclosures under the European Sustainability Reporting Standards (ESRS) and Article 8 of the Taxonomy Regulation using the XBRL format, starting with the financial years 2026 or 2027.

This initiative, aligned with the Corporate Sustainability Reporting Directive (CSRD), includes a draft XBRL taxonomy developed by EFRAG, reflecting the ESRS Set 1 standards. The proposal outlines a phased implementation for large Public Interest Entities (PIEs) and large groups, requiring Inline XBRL digital tagging for ESRS disclosures. Large non-PIEs will have an additional year to adopt, with full digitization of ESRS Set 1 expected by 2031 or 2032.

Stakeholders such as analysts, ESG rating agencies, data providers, financial institutions, and academics are encouraged to participate in the consultation. Feedback is crucial for shaping the future of digital sustainability reporting and ensuring accessibility for all stakeholders.

The consultation is open until 31 March 2025. Further details and resources are available on ESMA's webpage, including a comprehensive draft taxonomy and survey questions.

For more information, visit:

• ESMA News: ESMA consults on proposals to digitalise sustainability and financial disclosures

• EFRAG Webpage on digital XBRL Taxonomies

• EFRA News: EFRAG publishes the ESRS Set 1 XBRL Taxonomy

For more information:

Contact Morris Massarutto

Policy Updates and Future Developments in the European Institutions

The 1st of December marked a significant moment for the European Union, namely the establishment of a new European Commission, led for the second time by President Ursula von der Leyen. The Commission has set ambitious goals for the 2024-2029 legislative term, guided by seven key priorities, including a New Plan for Europe's Sustainable Prosperity and Competitiveness.

Building on Mario Draghi report, Von der Leyen's 2024-2029 political guidelines and Commissioners' mission letters call for stronger coordination between industry and the EU strategic objectives on sustainability, competitiveness, and geopolitical resilience. This starts with making business easier and faster, while also increasing investments and manufacturing capacities in green infrastructures and technologies.

All eyes are on the upcoming Omnibus Package: Chapeau Communication & Omnibus Proposal and the Clean Industrial Deal, both expected to be released on the 26th of February 2025.

The Omnibus Package, under the joint responsibility of President Ursula von der Leyen and the Executive Vice-President for Prosperity and Industrial Strategy, Stéphane Séjourné, aims to streamline overlapping reporting requirements among existing EU sustainability legislations (e.g., Taxonomy, CSRD and CS3D). Its ultimate goal is to alleviate the administrative burden on companies, but without altering the substantive content of these laws. However, significant uncertainty surrounds the details of the proposal, leading to concerns that it could become a double-edged sword for sustainability efforts.

Additionally, the Clean Industrial Deal, jointly led by Stéphane Séjourné and the Executive Vice-President for Clean, Just and Competitive Transition, Teresa Ribera, seeks to bolster the competitiveness of Europe's net-zero industries. It focuses on accelerating investments, reducing energy prices and providing strategic support for clean-tech supply chains.

Key initiatives also include the EU Competitiveness Compass, designed to address the EU's innovation gap with global players, strengthen economic security, and drive progress in decarbonising Europe's industry. The effort will be spearheaded by the Commission's Secretariat-General.

As business competitiveness and sustainability gain prominence on the new EU agenda, the European CSO Network, powered by CSR Europe, is positioning itself as a primary channel for dialogue between practitioners and policymakers. This was exemplified by its inaugural meeting with the new European Commission on the 5th of December 2024, shortly after the Commission took office. Drawing from its first Discussion Paper ''Leveraging Compliance Towards Business Value'', key challenges, opportunities, and solutions were presented, hence sparking a constructive exchange with EU interlocutors to enhance regulatory quality, unlock business value while boosting Europe's sustainability and competitive edge.

Much still remains to be unveiled. Below is the timeline of key EU milestones for the next months.

January:

• 29/01/2025 - Competitiveness Compass (possible delay due to von der Leyen illness)

February:

• 11/02/2025 - 2025 Commission work programme

• 26/02/2025 - Clean Industrial Deal

• 26/02/2025 - Omnibus Package: Chapeau Communication & Omnibus Proposal

For more information:

Contact Morris Massarutto

Interested in this topic? Subscribe to our Newsbundle

UPCOMING EVENTS

DISCOVER OUR EU SERVICES

LATEST NEWS