Reduction of reporting burdens
5 July 2023, Brussels
5 July 2023, Brussels
The quality of the European legal framework is key to its competitiveness. This is acknowledged both in the report of Mario Draghi that calls for reduction of regulatory and reporting burdens as well as in the mission letters to Commissioners designates with a concrete task of reduction of reporting obligations as well as overall improvement of the implementation of the sustainable finance framework.
More than a year ago, we have prepared a paper with the aim to contribute to the debate on simplification of the reporting requirements and the reduction of inconsistencies withing the EU legislative framework, focusing on ESG data requirements. It is essential that reporting requirements are reviewed in a holistic way to ensure that reporting helps enhance transparency on the analysis and management of companies ESG related risks, opportunities and impacts – an important element in channelling finance towards the transition to a more sustainable economy.
We believe the following key principle are still valid aspects to consider in the revision process:
1) Finding the right balance between, on the one hand, information needs of different economic stakeholders to facilitate the achievement of EU objectives and, on the other, reporting burdens
2) Consistency of the reporting requirements in the reporting value chain, including data points and timing
3) Consistency of requirements across different pieces of regulation with the objective of eliminating duplications and redundancies and ensuring common definitions
4) Symmetry in reduction of data requirements with questionable or immaterial information value between the financial and non-financial industry
5) Ensuring the availability of data relevant for the financial industry
6) Reducing the cost of calculation and reporting of individual datapoints
7) Consistent implementation, reduction of national discretions and gold-plating methods by Member States, which would also contribute to the reduction of reporting costs for cross-border institutions
8) Alignment with international standards and commonly used conventions and the provision of reconciliation tables to significantly reduce reporting costs and reconciliation efforts.
For more details, please see the entire report.
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For more information:
Denisa Avermaete, Senior Policy Adviser – Sustainable Finance, D.Avermaete@ebf.eu
The European Banking Federation is the voice of the European banking sector, bringing together national banking associations from across Europe. The EBF is committed to a thriving European economy that is underpinned by a stable, secure and inclusive financial ecosystem, and to a flourishing society where financing is available to fund the dreams of citizens, businesses and innovators everywhere.
The European Banking Federation is the voice of the European banking sector, bringing together national banking associations from across Europe. The federation is committed to a thriving European economy that is underpinned by a stable, secure and inclusive financial ecosystem, and to a flourishing society where financing is available to fund the dreams of citizens, businesses and innovators everywhere.
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