FuelsEurope supports the EU objective for significant corporate sustainability reporting policies, and believes that effective non-financial reporting is a great potential for investors to engage in low carbon and renewable energies.
The Corporate Sustainability Reporting Directive (CSRD), currently facing the secondary-legislation phase, creates a very complex legislative framework that needs to be adapted in order to facilitate companies in meeting its rules and expectations.
The main challenges are the following: complexity (multitude of reporting requirements on international, European, and national levels), overlapping and duplication risks and very short timeline for implementation and therefore for companies adaptation.
General recommendations include harmonisation with existing international standards, flexibility to report on materiality and avoidance of extremely granular level of reporting that could lead to excessive administrative burden for companies.
FuelsEurope believes that the standards currently being developed by EFRAG to feed the secondary legislation phase are a great opportunity to shape the above mentioned priorities, particularly when it comes to sector-specific standards (i.e. oil & gas). FuelsEurope stands ready to support the EU institutions and bodies while building such important pieces of legislations and call for EFRAG and the European Commission for an open and transparent dialogue with stakeholders.