By Virginia Furness
LONDON (Reuters) -A political push to pare back EU sustainability regulations must not mean losing information on material risks or force investors to rely more heavily on third-party data providers, Europe’s main asset management trade group said on Friday.
The European Commission is undergoing a sweeping review of planned rules on corporate disclosures amid concerns they were holding back European companies from competing with other regions, particularly amid a U.S.-driven tariff war.
In February, the Commission proposed changes that would exempt thousands of smaller European businesses from the rules, and curb obligations for bigger firms to check their supply chains for human rights and environmental problems.
The European fund managers’ group, EFAMA, said it supported the Commission’s efforts to reduce the regulatory burden but warned against cutting key information on sustainability risks that would hurt the bloc’s broader climate goals.
“From an investor perspective, simplifying disclosure obligations can support EU competitiveness by driving innovation and sustainable growth across the EU economy in key technological sectors,” Ilia Bekou, policy advisor at EFAMA, said in Friday’s statement.
Under its proposal EFAMA said it was preparing a smaller list of data points for companies to report which it estimates would reduce reporting needs by 80% and which could be supplemented by additional voluntary disclosures.
It also warned against excessively reducing the number of companies captured by the regulations as this would make it harder for European investors to support smaller green businesses.
Other suggestions include ensuring the changes are aligned with a forthcoming review of sustainability reporting requirements for asset managers.
(Reporting by Virginia Furness; editing by Simon Jessop and Susan Fenton)
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