Thousands of EU business leaders express support for CSRD and CSDDD

A poll of more than 2,500 European business leaders shows widespread support for the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD), even as legislators continue to push for ‘simplification’.

On the topics of mandatory climate transition plans (initially included in CSDDD but now ferociously disputed) and mandatory sustainability reporting as part of CSRD, business leaders’ opinions directly contradict the proposals that are being negotiated as part of the Omnibus simplification package.

Half of the business leaders surveyed by think tank E3G believe that regularly collecting and reporting sustainability data helps attract investment, versus 18% who disagree. In mid to large companies, this rises to over two thirds (68%).

Overall, 63% of survey respondents believe it is fair for large companies to be required to implement a plan to transition to a green economy, and 68% believe that the EU and European companies should set a global example for sustainability standards in business practices, versus just 10% who disagree.

“Policymakers are operating under the false assumption that businesses want to get rid of sustainability obligations,” said Jurei Yada, Director and Head of EU Sustainable Finance at E3G. “This survey blows that narrative out of the water. European businesses don’t see sustainability as red tape or a box-ticking exercise but a genuine driver of competitiveness, and an area where businesses and EU policymakers should lead the charge globally. The current political horse-trading risks undermining the very framework that businesses are asking for.”

Businesses largely opposed to EU Omnibus

Despite being presented as a competitiveness measure meant to cut red tape and the regulatory burden for European companies, the Omnibus package – which seeks to dramatically reduce the scope of CSRD and CSDDD – is not seen favourably by the business community.

Before this latest survey, companies have written a series of open letters asking regulators to preserve the core of sustainability regulations, arguing that sustainability leadership is good for business.

And another survey released in May showed that nearly two-thirds (61%) of European firms were satisfied with CSRD in its current form, while half were unhappy with the Omnibus.

Sustainability rules good for competitiveness

Again in the new E3G poll, over half (55%) of business leaders said that becoming more environmentally sustainable is important for their company’s competitiveness, versus just 21% who think it is unimportant. This rises to over three quarters (77%) of mid-to-large firms (250-999 employees), and to almost seven in ten (69%) for companies with supply chains outside of the EU.

In addition, 48% of  EU companies (59% of those with operations and supply chains outside the bloc) think that rules requiring companies to meet environmental and social standards will give the EU a long-term competitive edge over China and the US, compared to 21% who disagree. 

Trine Pondal, Director of Sustainability and Social Responsibility at Flying Tiger Copenhagen, said: “We are very concerned about the postponement of key sustainability and due diligence rules. Climate change cannot be postponed, it is a scientifically documented crisis unfolding right now that demands urgent and consistent action. CSRD has given companies a common language and stable framework for working with sustainability and long-term value creation. It has lifted ESG from something voluntary and incomparable to a strategic discipline that investors, boards, and value chains can trust. What we need are clear expectations and stable rules, not delays and loopholes. Uncertainty and rollbacks risk undermining the very transition we are investing in.”