Nummer: 186

Enabling Automated Sustainability Reporting

In line with the European Green Deal objectives, the ambitions laid out in the Communication on Long-term competitiveness of the EU and the Communication on the Single Market at 30 and to contribute to the Commission’s ambition to reduce administrative reporting burdens for companies by 25 %, this initiative propose concrete suggestions to further streamline and reduce the administrative burdens for companies in collecting, handling and processing data  in order to prepare their reporting in line with reporting obligations, particularly sustainability reporting. The initiative calls for solutions to make it easier for companies to share data B2B in order to report on sustainability – not to introduce additional requirements for companies.

Dato:
21. marts 2024
Type af anbefaling:
Tidlig interessevaretagelse i EU
Tema:
Tidlig interessevaretagelse
Ansvarlig ministerium:
Erhvervsministeriet
Status på anbefaling:
Følges

Problem

In order to ensure consistency and transparency in the compliance of relevant regulations there is a need to develop common digital data formats for sustainability reporting.  Status quo i.e., companies handling their data in analogue and manual processes, results in a high number of burdens for companies and limits the potential for automatization of processes and activities, including those related to reporting obligations. By addressing these obstacles European companies will be able to reduce their burdens stemming from sustainability reporting.
 

Justification for proposal

It is of utmost importance to ensure, that the sustainable transition and the transformation of the European societies resulting from the Green Deal, will strengthen the competitiveness of European companies, without limiting the ambitions of the proposed legislations.

With a view to the extensive new sustainability related requirements, not least stemming from CSRD and ESRS, there is a need for making it easier for businesses to collect, handle and process data. The proposals suggested here will not introduce new burdens, but conversely reduce the administrative burdens related to existing requirements.
 

Consequences for Danish and EU businesses

This initiative will aim to provide suggestions for coherent sets of policy measures necessary to reduce administrative burdens related to compliance with new sustainability reporting legislations while at the same time maintain high ambitions for the green, sustainable, and circular transitions of Danish and EU businesses

 

Affected EU-legislation

  • Corporate Sustainability Reporting Directive
  • Sustainable Finance Disclosure Regulation (SFDR)
  • Taxonomy Regulation
  • CRR Pillar 3
  • Ecodesign for Sustainable Products Regulation
  • Corporate Sustainability Due Diligence Directive
  • Forced Labour Regulation
  • Green Claims Directive
  • Right to Repair Directive
  • Empowering Consumers in the Green Transition Directive
  • Packaging and Packaging Waste Regulation

Anbefaling

Proposal for simplification

  • In line with the SME-standards developed by EFRAG and the digital reporting format required after CSRD and ESEF, further proposals for simplification and ensuring the availability of sustainability data should be further analyzed:
  • Common digital data formats for information needed for sustainability reporting and a robust, sustainability data infrastructure underpinning EU legislation
  • Common criteria and digital standards for various ESG-solutions, such as functional requirements for business systems, emission calculation tools following internationally recognised methodologies as well as transparency requirements for data providers to incentivise openness in the collection, storing and use of sustainability and supply chain data.
  • Establishing an accessible, authoritative and interoperable EU database with officially recognised sustainability related data needed by companies for their reporting, e.g. CO2-emissions factors.
  • Making sure that the Digital Product Passports, as proposed in the Ecodesign for Sustainable Products Regulation, serve as the default option for future product legislation that sets out product data sharing requirements.

Regeringen kan tiltræde anbefalingen. Regeringen vil arbejde for indarbejdelsen af klare, ensartede og fælles standarder, kriterier og dataformater for udveksling af bæredygtighedsdata i EU-lovgivning mhp. at gøre det lettere og mindre byrdefuldt for virksomheder at indsamle, dele og rapportere bæredygtighedsdata. Ligeledes vil Regeringen arbejde for etableringen af en fælles europæisk CO2-emissionsfaktor database såvel som, at det Digitale Produkt Pas (Ecodesignforordningen) fungerer som standardvalget for fremtidig produktlovgivning, der fastsætter krav til deling af produktdata.