323 entities urge EU to preserve double materiality in CSRD

A Eurosif-led public declaration urging the EU to retain the CSRD's double materiality principle gained support from 323 entities ahead of Omnibus deliberations. Any dilution would fragment global ESG harmonisation, affecting Indian companies that align reporting with EU, GRI, and ISSB frameworks.

A public declaration orchestrated by Eurosif urging EU lawmakers to uphold the Corporate Sustainability Reporting Directive's integrity gained 323 signatories, comprising 104 investors, 40 companies, and 74 supporting organisations, including Allianz SE, IKEA, Nokia, Nordea Asset Management, and the Dutch Federation of Pension Funds. The coalition fears the forthcoming Omnibus regulation could dilute double materiality, which requires companies to disclose both how sustainability issues affect financial performance and how their activities impact people and the planet. The CSRD, adopted 2022, began phased implementation in FY2024.

Large and listed companies subject to the CSRD are directly affected, alongside investors and sustainability officers reliant on comparable ESG data. Signatories warn that streamlining the European Sustainability Reporting Standards could compromise alignment with GRI and ISSB frameworks. Global policy groups including UN PRI, E3G, and the Institutional Investors Group on Climate Change endorsed the letter. GRI CEO Robin Hodess cautioned that diluting double materiality would be short-sighted when transparency is vital for investor confidence and climate risk disclosure.

Organisations have until 29 August to sign the letter, after which the European Parliament begins Omnibus deliberations. The coalition cites the UN's June 2025 Financing for Development Outcome Document supporting international uptake of impact- and risk-based disclosures. Sustainability officers and compliance analysts should monitor the Omnibus package, since any rollback could require recalibrating internal reporting systems, investor communications, and risk modelling. Companies should assess exposure to potential ESRS changes and track alignment between EU standards and global GRI and ISSB frameworks.

Key figure — Signatory total: 323 entities, including 104 investors and 40 companies