EU bureaucracy: danger to social standards and the environment?

EU bureaucracy: danger to social standards and the environment?

In a current report by the Chamber of Labor, the potential dangers are pointed out that could go hand in hand with the reduction of bureaucracy in the EU. According to the analysis of Brigitte Pirchner, a scientist at Södertörn University in Sweden, excessive deregulation could not only endanger social and environmental standards, but also undermine the entire social system in Europe. The EU currently has more than 23,000 laws, while Switzerland only has around 5,000. A proposal by the EU Commission, which wants to loosen the reporting duties in animal diseases, causes additional concern, since the advantages of the maintenance measures for the health of employees are ignored, according to the AK director Silvia Hruška-Frank. This is done at the same time, in which the Signa bankruptcy as the greatest bankruptcy case in the European real estate industry still beats fresh wounds.

New regulations for corporate reporting

At the same time, the CSRD reporting obligation (corporate sustainability reporting directive) is regarded as a fundamental change for sustainability reporting in Europe. This new EU directive, which extends the previous requirements of the NON-Financial Reporting Directive (NFRD), obliges companies to provide more detailed information about their social and ecological effects. As reported on bi2run.de , companies whose size corresponds to the requirements of the NFRD must report from 2024, according to the new standard, which could potentially put pressure on companies to prepare for it at an early stage.

The CSRD will gradually move in, starting with large companies in 2024 and later also for smaller companies. Central topics include the consideration of climate risks and the implementation of sustainability goals, which places high demands on the existing data systems. Companies that use digital solutions and specialized software to support reporting at an early stage could secure a significant competitive advantage, while the pressure is increasing to comply with the rules.