CDP Reaction to the EU Omnibus Simplification Package
Sherry Madera, CDP Chief Executive Officer, responds to the European Commission’s latest legislative proposal.
“CDP welcomes efforts to enhance business efficiency, however this package risks undermining that very goal. Sustainability disclosure is already a core business practice in Europe. Companies routinely respond to customer, investor and shareholder requests about their sustainability strategies. They do this because transparency builds trust, attracts investment and strengthens business efficiency.
Data in public markets shouldn’t create a divide between ‘haves and have-nots'. Transparency is essential for investors to properly assess environmental risk and opportunity – no matter a company’s size.
Thousands of companies have already proved that environmental action and competitiveness go hand in hand. European companies reporting through CDP identified €3.47 trillion in climate opportunities – far outweighing the €620 billion in costs to realize them. True competitiveness means spotting and capitalising opportunities early, and you can’t do that without robust data on sustainable business practices.
CDP stands ready to support EU institutions in ensuring that simplification efforts genuinely reduce burdens while upholding the ambition of the EU Green Deal. Cutting regulation is only one side of the coin. Europe cannot achieve sustainable growth without the data to do so. We need smart, evidence-based reform that is Earth-positive and forward-looking – not a step backward.”
Sherry Madera, CDP Chief Executive Officer
CDP strongly cautions against:
Removing sector-specific standards under CSRD. Businesses need clear sectoral guidance for meaningful materiality assessments, even without full sector-specific standards.
Removing around 80% of companies from the scope of CSRD and delaying application. Any change in scope or timelines risks creating uncertainty in the market and rewarding inaction instead of leadership. Exempting listed SMEs sends the wrong signal—public listing comes with transparency obligations. Environmental disclosure should be treated no differently than financial disclosure responsibilities. For financial markets to function effectively, data must flow. Excluding listed SMEs would undermine market transparency. With over 12,500 companies disclosing through CDP’s SME questionnaire, it's clear that they are already committed to environmental transparency.
Delaying and weakening CSDDD obligations. 2030 is a critical milestone to avoid breaching irreversible tipping points. The CSDDD is the only legislation in the Omnibus requiring companies to act—not just report. Removing the review clause for financial institutions and delaying the directive puts climate and human rights commitments at risk at a time when urgent action is needed.
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