Michael Littenberg’s Post

An interesting “call to action” letter from earlier this week from the leaders of 19 EU countries to the European Council President, sent before the Oct. 23 Council meeting (more on that below). The letter addresses more than just ESG, but is relevant in that regard as the CSRD/CSDDD “omni-mess” continues and the Commission proposes to scale back aspects of the EU Deforestation Regulation, among other simplification initiatives. Some of the letter's calls to action/soundbites: “ ... systematic review of all EU regulations to identify rules that are superfluous, excessive, or unbalanced and we must examine the entire acquis of EU rules to determine whether they are still fit for purpose.” “ ... the reduction of the rulebook and the dismantling of outdated rules, while maintaining policy goals, relevant standards and the integrity of the single market. This requires a constant stream of Omnibus proposals from the European Commission throughout its term of office.” … “We particularly expect swift adoption on CSRD and CSDDD simplification.” “ ... self-restraint when it comes to new legislation, which should anyway come with strengthened impact assessments. Beyond directives and regulations, this needs also to be applied to the proliferation of delegated and implementing acts. ... Europe must limit itself to the bare minimum of new regulation in full compliance with the principles of subsidiarity and proportionality.” “Reducing bureaucracy is a matter of utmost priority and it is urgent. At our next meeting of the European Council at the end of October we should distribute specific work assignments to set the new course.” “By the end of the year the European Commission should systematically review the EU regulatory framework and submit a proposal on how outdated and excessive rules can be dismantled and which existing or planned rules can be dispensed with altogether.” … “We call for a special meeting of the European Council on competitiveness in February 2026 to review the work done and to provide political guidance on all competitiveness fronts identified in the Draghi report: reducing bureaucracy, completing the Single Market in all its dimensions, strengthening European innovation and industry, ensuring economic safety and a level playing field, delivering on the Capital Markets Union.” … ” From the October 23 Council meeting (https://lnkd.in/eBR2iGZD): "EU leaders reaffirmed the urgent need to pursue the simplification of EU rules and welcomed the progress achieved so far, including on the carbon border adjustment mechanism and the ‘stop-the-clock’ mechanism for sustainability reporting, battery due diligence and chemicals. In this context, they called on the Council and the Parliament to swiftly conclude work on the remaining omnibus packages." Subscribe to Ropes & Gray ESG/CSR/business and human rights compliance thought leadership here: https://lnkd.in/eXd3n9qx #CSRD #CSDDD