SENNA

EU Lawmakers Delay Environmental Disclosure Rules by 12 Months

Brussels - European lawmakers have voted to delay the implementation of the EU's landmark environmental disclosure rules by 12 months, according to responsible investment publication Responsible Investor.

The one-year postponement of the EU's Corporate Sustainability Reporting Directive (CSRD) comes as businesses across the continent grapple with the economic fallout from the war in Ukraine and other macroeconomic headwinds. The CSRD, which was initially slated to take effect in 2023, will now require companies to begin reporting on their environmental and social impacts starting in 2024.

The delay provides some relief for firms that have been scrambling to put the necessary data collection and reporting processes in place ahead of the original deadline. However, environmental advocates argue that the postponement risks slowing the momentum towards greater corporate transparency on sustainability issues.

"While we understand the challenges businesses are facing, further delays to these critical disclosure rules are disappointing," said Sven Giegold, a member of the European Parliament and the Greens/EFA group. "Investors and the public need this information to hold companies accountable for their environmental impact."

The CSRD, which was approved by the European Parliament last year, will significantly expand the number of companies required to report on their sustainability performance. It will apply to all large companies, as well as small and medium-sized enterprises listed on EU regulated markets.

The details of the CSRD's implementation, including the specific reporting metrics and assurance requirements, are expected to be published by EU authorities next week. Industry groups have lobbied for a phased approach and flexibility in how the rules are applied, particularly for smaller companies.

Separately, New York City Comptroller Brad Lander has called on the city's five pension funds to terminate their $7 billion passive investment mandate with BlackRock, citing concerns over the asset manager's climate change policies. The move highlights the growing pressure on large investment firms to align their stewardship activities more closely with the goals of the Paris Agreement.

"Investors are increasingly demanding that asset managers take concrete steps to address the systemic risks posed by climate change," said Lander. "BlackRock's approach has fallen short, and we believe our beneficiaries would be better served by a manager more committed to the energy transition."

Representatives for BlackRock did not immediately respond to a request for comment.