Kate Abnett
Bruseles (Reuters) – Austrian manufacturer RHI magnesite consumes about one million euros out of its approximately 400 million euros in earnings a year, ensuring that it is in accordance with EU rules with corporate sustainability. The first wave of reform for peeling the back of the bureaucracy layers will do little to reduce the account, it writes.
‘Omnibus simplification of the European Union’, which would exclude sustainable reporting with smaller companies and maintained the obligations for the transparency of the supply chain, left a larger company such as RHI Magnesite frustrated and gurnal for higher.
The reforms are charged as the urge to remove the bureaucracy layers that cost European businesses time and money and set them in a more unfavorable position against cheaper rivals in China and in the US, where Trump’s administration is aggressively returning to regulation to encourage growth.
“It seems, at least at first glance, that it doesn’t really change,” RHI Magneti CEO Stefan Borgas told Reuters.
RHI magnesite says he spends an additional audit and employs three or four full -time employees to collect the amount of data required by the EU law, which requires companies to report more than 1,000 sustainability data.
The company’s global business covers 65 production sites and employs 20,000 staff. He informed the adapted earnings before taxation, interest and depreciation of 407 million euros in 2024.
The proposals in February were part of the wider package of EU reforms aimed at strengthening European competitiveness and stimulating industry on decarbonis.
EU leaders discussed further circles of reforms at the Brussels Summit on Thursday, where they announced a joint statement that sought a commission to direct the rules for industrial decarbonization and defense.
The Proposals of the European Commission for Suppression of Sustainability Rules will bring relief to companies that employ less than 1,000 staff, which would exclude plans from the reporting rules. IT predicts that companies will save € 4.4 billion ($ 4.77 billion) per year.
Larger companies are likely to benefit more than the proposed changes in the transparency of the supply chain, which the Commission says would more than halve the estimated annual compliance costs of 480,000 euros for the largest companies.
Still, a great job remains unconvinced. The AFEP group of the 118 largest private companies in France said that proposals “do not correct bureaucratic burden” for larger companies.
Gwenaelle Avica Huet, European leader of the French Blue Chip Schneider Electric, with an annual revenue of EUR 38 billion, said the large companies were “a little separated”. However, she welcomed the plans for the introduction of more specific reporting for each sector.
