Environment: Orgalim position on draft reporting rules for companies under the EU Taxonomy Regulation
Published: 2 June 2021
Policies & Issues: Environment
Orgalim appreciates the opportunity offered by the European Commission to provide its views on the draft delegated act (DA) on Article 8 of the European Union Taxonomy Regulation, which further specifies disclosure obligations for companies.
Orgalim supports a a closer link between financial and sustainability reporting. For companies, it is important that the reporting obligations linked to the EU Taxonomy Regulation serve as a real driver for sustainable development without creating an unnecessary administrative burden and additional costs.
However, we doubt that the draft DA on Article 8 in its current version is fit for purpose. The proposal requires disclosures which will overhaul the EU’s reporting procedures. The granular level of disclosure will lead to costly over-reporting on the taxonomy and is currently not striking the right balance to ensure enough added value for investors when deciding to finance economic activities enabling the transition to a climate-neutral and sustainable Europe.
Against this background, we urge the Commission to recognise the immense journey it is asking companies to embark on as they adapt to the new reporting requirements. We also urge the Commission to make requirements feasible and cost-efficient.
To read our recommendations for the way forward in full, please download the document above.
Adviser - Industrial Transformation