FERMA calls for clearer guidance on sustainability

The Federation of European Risk Management Associations has welcomed this week's Omnibus Sustainability Rules Simplification Package but has called upon the European Commission to provide a more pragmatic approach and clearer guidance to achieve sustainability goals.

FERMA considers Omnibus I “a positive signal for companies”, adding that sustainability risk management must be a “business and governance matter, rather than a compliance requirement”. Highlighting the central role of risk managers in contributing to reporting requirements, it argues that sustainability risks are not "substantially different from other forms of risk" and as such should be addressed using an ERM-based approach.

FERMA has urged risk managers to be prepared for reporting requirements under the current versions of the CSRD and CS3D, should the proposed postponement of their application to 2028 be rejected or the scope of the directives changes during the legislative process.

Valentina Paduano, FERMA vice-president, said: “FERMA welcomes the introduction of the Omnibus I and efforts to streamline sustainability reporting requirements. While the EU needs to keeps its ESG ambitions high, however, it must also apply a more pragmatic approach to ensure that CSRD and CS3D have a meaningful impact at both company and societal level, in turn amplifying the resilience and competitiveness of the EU economy. We believe the proposals made within FERMA’s position paper will contribute to this.”