The Budget Committee postponed the requirement for companies to submit ESG reports

The parliamentary budget committee has postponed by one year the entry into force of new rules that require businesses to publish non-financial sustainability reports. The obligation, which was supposed to apply only to companies with more than 500 employees, stems from a European directive, which has not yet been implemented by all member states.

The topic of ESG reports was raised by former Finance Minister Assen Vassilev last January, but back then the MPs in the committee paid no attention to the bill, as they were in a hurry to adopt the budget act.

The Ministry of Finance has given a negative opinion on the bill, warning that Brussels may initiate a criminal procedure due to the non-transposed directive.

"I did not see in the Ministry of Finance's statement an indication that they had sent a question to the European Commission whether it would start such a procedure," pointed out Assen Vassilev from "We Continue the Change - Democratic Bulgaria". He asked the Ministry of Finance for information on whether such talks had been held with the EC.

However, a representative of that ministry was not present at today's meeting.

A one-year postponement will not lead to such a procedure and will be beneficial for business," said Alexander Ivanov from GERB.

According to the explanatory memorandum to the ESG Bill, as of mid-January, 18 member states had transposed the directive, while 11 others, including Germany, were still in the process of discussion. It also states that the EU and the EC plan to review and ease the requirements for sustainability reporting. This was one of the main arguments put forward during the several-minute debates between MPs for the extension of the deadline.

Translated by Tzvetozar Vincent Iolov