Monday Morning Briefing CW 16, 2025

April 21, 2025

Regulatory News

EU Faces Complaint Over Eased Sustainability Rules (April 17)

ClientEarth and other NGOs have filed a formal complaint to the EU Ombudsman, accusing the Commission of maladministration in developing its “Omnibus” simplification package. The groups allege backroom consultations with fossil fuel majors like ExxonMobil, Eni, and TotalEnergies while avoiding formal impact assessments. The package could significantly reduce the scope of CSRD-related reporting.

EU Eases Anti-Deforestation Reporting Rules (April 16)

The EU has revised the implementation of its deforestation regulation. Companies must now report annually, not per shipment, with full compliance delayed until December 2025. A three-tier country risk classification system is expected by June 2025. Industry welcomes the changes, but NGOs warn they could weaken traceability and enforcement.

EU Council Approves ‘Stop-the-Clock’ Delay (April 14)

The Council of the EU has officially approved a delay to two major ESG policies. Companies with fewer than 500 employees will now report under the CSRD starting 2028. The EU’s supply chain law (CSDDD) has also been pushed back to 2028.

EU Green Rules Cost Chemical Industry 20 Billion Euros Annually

The European Chemical Industry Council (CEFIC) reports that ESG-driven regulation now costs the sector over 20 billion euros per year. Major firms like BASF, Dow, and LyondellBasell are reassessing investments in the EU. CEFIC cites regulatory uncertainty and energy costs as key concerns.

Digital Product Passports Challenge Fashion Sector

Marks & Spencer–owned label Nobody’s Child is piloting Digital Product Passports (DPPs), ahead of EU requirements set for 2026. Each item requires over 110 unique data points. While DPPs offer transparency benefits, smaller brands may struggle with compliance.

EFRAG to Deliver ESRS Simplification Proposal by October 31

EFRAG has been tasked with simplifying the European Sustainability Reporting Standards (ESRS). A full work plan is expected this month, with the revised standards due by October 31, 2025. These changes will shape how companies report ESG data under the CSRD.

Sources: Reuters, Vogue Business, Linklaters, National Law Review.

This article was created with the assistance of AI and carefully reviewed, edited, and refined to ensure accuracy and clarity.