The Importance of Strong Sustainable Disclosure Rules for Investors
The Sustainability Omnibus PodcastShow Notes
In this episode of the Sustainability Omnibus Podcast, hosts Moriah Costa and Simon Nixon speak with Tessa Younger, Stewardship Lead at CCLA Investment Management. As one of over 200 investors with €6.6 trillion in assets under management who signed an open letter urging the EU Commission to maintain robust sustainability disclosure standards, Tessa Younger shares her insights on why these regulations are vital for the investors and the EU’s long-term competitiveness.
Tess Younger shares how these standards provide essential clarity for investors, helping to track corporate climate transition efforts and ensure accountability. As the EU continues to debate the simplification of its reporting framework, Tessa emphasises the need to reduce complexity without sacrificing transparency.
This conversation dives into the implications for investors and businesses. Tessa Younger warns that the proposed reduction of the scope of the Corporate Sustainability Reporting Directive (CSRD) in terms scaling back the size of companies required to report would create significant data gaps for investors, undermining their ability to assess risks and track corporate progress on climate and sustainability goals. These gaps could also increase the risk of greenwashing, as companies may exaggerate their sustainability efforts without proper oversight. She warns that weakened rules would also reduce pressure on companies to align their lobbying activities with their climate commitments, risking inconsistencies between their public stance and behind-the-scenes influence.
Key Topics Discussed:
Why the EU’s double materiality principle is key to transparency
The importance of robust reporting frameworks in supporting investor decision-making
The risks of watering down EU disclosure rules and their impact on global reporting standards
Why we need strong sustainability standards to help fight greenwashing
How to balance simplified reporting while still providing investors with meaningful data
Resources & Further Reading:
Green Central Banking:https://greencentralbanking.com/2025/02/26/eu-sustainability-omnibus-proposal/
EU Commissions Omnibus Proposal: https://commission.europa.eu/news/commission-proposes-cut-red-tape-and-simplify-business-environment-2025-02-26_en
Tessa Younger joins investors in warning that the Omnibus package weakens EU sustainability disclosures, harming investment and economic competitiveness: https://www.unpri.org/news-and-press/investors-warn-omnibus-package-could-weaken-eu-sustainability-disclosures-harming-investment-and-economic-competitiveness/13023.article
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