"This reform is not a step back in European sustainability but rather a reconciliation of bureaucracy with the real needs of the economy. It allows companies to allocate resources where they generate measurable results, such as reducing emissions, rather than in drafting reports", said Răzvan Nica, founder of BuildGreen and CEO of Carbon Tool. "By reducing the amount of data required for reporting, we anticipate an increased focus on carbon footprint, the most relevant sustainability indicator, and its derived KPIs. Our analyses, based on data collected through Carbon Tool, indicate that ESG reporting budgets can be redirected toward projects that reduce carbon footprint, improve energy efficiency, and drive technological innovation, generating more tangible economic and environmental benefits", added Răzvan Nica.

According to Răzvan Nica, the revision of the Corporate Sustainability Reporting Directive (CSRD) limits mandatory reporting to companies with over 1,000 employees. As a result, most small and medium-sized enterprises (SMEs) in Romania are excluded from the reporting obligation, including those listed on the stock exchange. At the European level, estimates indicate an 80% reduction in the total number of companies affected by CSRD regulations.

For the Romanian economy, this adjustment will eliminate reporting requirements for approximately 5,700 companies, keeping only large corporations, predominantly multinationals, under the directive's scope. This represents a recalibration of European policies aimed at reducing bureaucracy for SMEs and allowing resources to be reallocated toward concrete investments.
Eurostat data ranks Romania 22nd in the EU in terms of ESG reporting, with only 12% of SMEs having structured systems for monitoring sustainability indicators. By comparison, in countries like Sweden or Denmark, over 60% of SMEs voluntarily report ESG performance. Consequently, the impact of reducing reporting obligations will be felt differently across Europe.