More than 100 companies and financial institutions have issued a warning against proposed rollbacks to the European Union’s corporate sustainability regulations, arguing that the rules underpin long-term economic growth and competitiveness.
In a joint statement, a coalition of 29 companies and 80 investors—including EDF, Nokia, Allianz, and Ingka Group (parent company of IKEA)—defended the EU’s current sustainability framework. The group contends that rather than stifling productivity, the rules are instrumental in supporting growth, managing climate risks, and steering capital toward green technologies.
“By promoting transparency and responsible business conduct, the rules are conducive to growth, better risk management, and investment in the green transition,” the statement said.
EU policymakers are currently considering proposals to ease reporting requirements under the Corporate Sustainability Reporting Directive (CSRD) and to dilute due diligence obligations for supply chains. The revisions are being pushed by some member states, including Germany and France, as well as parts of industry, citing concerns over regulatory burden and compliance costs.
However, the broad coalition of businesses and investors counter that such changes would undermine efforts to align with climate targets and diminish the EU’s leadership on sustainability. They recommended retaining the scope of reporting for companies with more than 500 employees and urged the introduction of mandatory climate transition plans.
The European Commission has proposed raising the reporting threshold to firms with at least 1,000 employees—removing more than 80% of the 50,000 businesses currently covered. Some lawmakers are calling for an even higher threshold of 3,000 employees.
“Where there is room for smart simplification, let’s tweak the regulation, but we need to stay the course and be proud of it to assert our leadership,” said Carine de Boissezon, Chief Impact Officer at EDF.
The final shape of the rules will depend on negotiations between EU governments and the European Parliament in the coming months.
