Resistance is growing from the business community and civil society on EU plans to roll back recently introduced laws on corporate sustainability reporting intended to help halt and reverse the degradation of nature, amid lobbying by opposing political forces, with fingers now pointing at US involvement.
As the European Union heads into the final phase of negotiations on the Omnibus Package, it has confirmed that plans to scale back core elements are part of an upcoming trade agreement with the United States. Business For Nature reports that the new EU-U.S. tariff statement pledged that European Sustainability Reporting Standards (ESRS) such as the Corporate Sustainability Reporting Directive (CSRD), as well as the Corporate Sustainability Due Diligence Directive (CSDDD) and the EU Deforestation Regulation (EUDR) will be adjusted so they “do not pose undue restrictions on transatlantic trade”.
However, over 400 businesses, investors and organisations have warned that weakening CSRD and CSDDD risks undermining competitiveness and long-term growth. Signatories, including the Corporate Leaders Group and Eurosif consider that regulatory simplification can be achieved without drastically compromising on the substance of sustainability rules. Read their recommendations, including advice to retain a double materiality approach HERE.
The amended European Financial Reporting Advisory Group (EFRAG) draft of the ESRS is currently up for public consultation until September 29, 2025 and stakeholders – including sustainability experts, investors and national authorities – are invited to share their views. EFRAG will also organise outreach events throughout September and October to gather further feedback ahead of its final technical advice to the European Commission, due by November 30, 2025. Read the draft and amendments here and submit your thoughts via survey.
Meanwhile the European Commission is wrapping up its Call For Evidence feedback period on the matter on September 10. For those with less time or in-depth technical knowledge to review the documents who wish to express their concerns to the EC, the #HandsOfNature Campaign led by environmental groups including the European Environmental Bureau, WWF and BirdLife Europe, and in Ireland, the Irish Environmental Pillar/Irish Environmental Network and Irish Wildlife Trust have a campaign to enable concerned citizens to have their say, including an online tool with sample text you can add to or adjust to state your thoughts on keeping the regulations robust.
