The insurance industry has endorsed the European Commission’s (EC) proposal to postpone the implementation of key sustainability regulations under the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) until 2028. The delay forms part of the EU’s first Omnibus package, which aims to streamline reporting requirements while broader legislative negotiations continue.
In a position paper released Wednesday, Insurance Europe reaffirmed its commitment to addressing climate change and supporting the European Union’s sustainability goals. However, the industry stressed the need for additional time to assess the impact of these regulations, ensuring that companies remain focused on meaningful sustainability action rather than administrative compliance.
“As part of the ‘Stop-the-clock’ mechanism within the EU’s first Omnibus package, large companies who have yet to begin CSRD reporting and listed SMEs would see a two-year delay, while the CSDDD’s transposition and first phase would be postponed by one year,” the federation stated.
“In line with the European Commission’s commitment to reducing reporting burden and simplifying its laws, the industry stresses that more time is needed to sufficiently assess the impact of the two legislations, ensuring that excessive regulatory burden avoided being diverted from real action on sustainability.”
Insurance Europe outlined several recommendations for the Omnibus package, focusing on four key areas.
For the Corporate Sustainability Reporting Directive (CSRD), the industry calls for a commitment to reviewing and reducing existing reporting standards. It also recommends eliminating requirements for more detailed, sector-specific reporting while maintaining the current assurance requirements. Additionally, mandatory reporting should apply only to the largest companies, and the proposed Omnibus improvements should be included in electronic tagging requirements and timelines.
Regarding the Corporate Sustainability Due Diligence Directive (CSDDD), insurers welcome the removal of an EU-level civil liability regime and advocate for the removal of the review clause concerning the inclusion of financial services. They also support extending the transposition deadline and the first application date by one year, along with deleting Article 1(2), which mandates maintaining national levels of protection.
In relation to the EU Taxonomy, the industry supports eliminating the underwriting Key Performance Indicator (KPI) while retaining the proposal for a 10% materiality threshold. It also backs the significant reduction of specific reporting templates and the simplification of the ‘Do No Significant Harm’ (DNSH) criteria.
For Solvency II, the insurance sector calls for the removal of the requirement to develop Sustainability Risk Plans (SRPs) under the directive.
While the proposed delays allow for further assessment of the regulations’ impact, the insurance sector maintains that a balance between robust sustainability measures and manageable compliance requirements is essential for long-term success.
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