Requirement for listed SMEs to disclose sustainability information following the proposal for a corporate sustainability reporting directive (2021/0104(COD))

3.2.2022

Priority question for written answer  P-000461/2022
to the Commission
Rule 138
Geoffroy Didier (PPE)

The proposal for a directive (2021/0104(COD)) on the disclosure of sustainability information by certain companies seeks to amend Directives 2013/34/EU, 2004/109/EC and 2006/43/EC, as well as Regulation (EU) 537/2014.

Listed SMEs, with the exception of micro-enterprises, will therefore be required to disclose a range of non-financial information with a view to placing greater emphasis on non-financial issues relating to sustainable development in their business activities, especially as regards strategy, governance and risk management.

However, although the proposal facilitates transparency in corporate governance, it also imposes even more red tape on SMEs. Of the 20 million SMEs in the EU, only 3 000 are listed companies. This is principally because excessive red tape makes it difficult for companies to go public on the stock exchange.

It is true that less non-financial reporting would be required, and SMEs would be given more time than larger companies to meet publication requirements. However, does the Commission not believe that these new measures might dissuade SMEs from entering financial markets? What can the Commission do to prevent this?