EU is set to shrink ESG reporting rules amid French demands

Germany has already raised objections about the scope of CSRD

CSRD would affect as many as 50,000 companies doing business in the European Union. Picture: Alex Kraus /Bloomberg

The European Union is set to scale back its highly contested ESG reporting requirements, as France prepares to unveil a formal proposal seeking to limit the scope of the regulatory framework.

The French government is readying a new set of recommendations intended to rein in the Corporate Sustainability Reporting Directive, and may present its proposal as early as this week.