European Shippers’ Council welcomes recent developments in EU sustainability legislation, particularly the updates to the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD), while urging greater clarity, harmonisation, and practical implementation timelines.
On 24th May 2024, the CSDDD was formally adopted, requiring companies to proactively identify and mitigate human rights and environmental risks throughout their supply chains. Meanwhile, the CSRD, effective from 2025, mandates the use of the European Sustainability Reporting Standards (ESRS) to enhance transparency and accountability in corporate sustainability performance.
ESC recognises the efforts of the European Commission to simplify compliance through the February 2025 Omnibus Package. This includes reduced reporting requirements, extended deadlines, narrowed scopes, and softened audit and liability obligations. However, ESC remains concerned that these revisions, while easing administrative burdens, risk undermining progress and investor confidence in sustainability.
Key concerns include the legal fragmentation across Member States, the slow publication of technical standards, and the exclusion of many companies from reporting obligations, potentially disadvantaging those who have already invested in sustainability leadership. ESC also highlights the risk of disengagement from high-risk regions and reduced collaboration from foreign suppliers, threatening the very communities the regulations aim to protect.
To address these challenges, ESC calls for harmonised definitions, clear compliance guidance, and a balanced approach combining compliance with incentives. The Council also proposes a minimum 24-month notice for any new obligations and supports a unified reporting standard based on the principle of double materiality.
ESC remains committed to sustainability and constructive dialogue with EU institutions, advocating for effective and realistic policies that benefit businesses and workers.