ESG POLICY & STRATEGY

The EU Reduced ESG Regulations… Costs Companies Must Cut Now and Data They Must Keep to the End

The EU has streamlined ESG regulations by narrowing the scope of the CSRD and CSDDD to ease corporate reporting and due diligence burdens. However, being excluded from regulatory scope does not mean that actual business risks, such as energy, safety, and supply chains, disappear. South Korean companies should not apply EU regional standards as-is, but rather evaluate applicability by dividing their operations into headquarters, EU subsidiaries, sales regions, and group structures. While unnecessary reports and duplicate data submissions should be curtailed, it is necessary to maintain calculation grounds and raw data for core indicators such as emissions, energy, and safety. The core of ESG budget restructuring is not uniform cuts, but reducing reporting costs while retaining the information required for management decision-making and risk management.