European Central Bank president Christine Lagarde has sent a letter to the European Parliament, expressing her concerns over the proposal to narrow the scope of the CSRD through the omnibus package - which is currently being debated by MEPs ahead of a plenary vote and trilogue negotiations.
She argued that an amendment to reduce the number of companies subject to the reporting requirements “would limit the availability of firm-level data, thereby weakening the Eurosystem’s ability to perform a granular assessment of climate-related financial risks on its balance sheet and within its collateral framework”.
Lagarde highlighted the ‘climate factor’ that will be introduced within the Eurosystem collateral framework in the second half of 2026 to address financial risks stemming from climate change uncertainties.
“To adequately consider the implications of climate change and nature degradation, the Eurosystem requires sufficient high-quality climate data,” she wrote. “It is therefore important that these amendments strike the right balance between retaining the benefits of sustainability reporting for the European economy and the financial system while also ensuring that the requirements are proportionate.”
