The “Omnibus” proposal, presented by the European Commission in February 2025, marks a worrying shift in the EU’s sustainability strategy.
Under the banner of simplification and reducing burdens on companies, this proposal delays and significantly scales back the application of the Corporate Sustainability Reporting Directive (CSRD). Yet findings from a survey conducted by HEC Paris and the WeAreEurope initiative show that this decision could seriously undermine a crucial competitive advantage for Europe.
At a time of intense debate about the compatibility between sustainability and competitiveness, data gathered from over a thousand European professionals is unequivocal:
84% of respondents support the EU’s sustainability goals, and 61% are satisfied with the CSRD as approved in 2022. Conversely, only 25% support the Omnibus package in its current form, with more than half believing it requires significant changes.
This clear signal from Europe’s business community contradicts the narrative that the CSRD is an unbearable burden.
On the contrary, the data show that companies are willing — and in many cases already prepared — to embed robust ESG practices into their operations. What they seek is not a dilution of requirements, but rather greater technical clarity, practical guidance and implementation support, especially for SMEs.
In this context, we reaffirm a core belief: Europe must continue to invest consistently in corporate sustainability.
This is not only an ethical or environmental commitment — it is increasingly a strategic competitive advantage. Over the medium and long term, sustainability delivers preferential access to investment, operational resilience, talent attraction and retention, business-model innovation, and alignment with global value chains.
By requiring structured and comparable reporting on ESG risks, impacts and opportunities, the CSRD positions Europe as a normative and reputational leader.
Over 90% of respondents recognise this geopolitical potential of the directive, including the ability to influence global standards, boost the European ESG data industry, and demand reciprocity from non-European companies.
Rolling back now through the Omnibus weakens that ambition, undermines regulatory predictability, and penalises precisely those companies that moved early — many of which have already invested significantly in systems, skills and structure.
Of course, proportionality must be ensured and bureaucratic overload avoided.
But this should be done through targeted adjustments and tailored support, not by dismantling the rules before they have even been fully implemented.
In short, this is not a choice between sustainability and competitiveness.
It is about recognising that sustainability is one of the pillars of future competitiveness. Europe has the opportunity to lead by example and turn a regulatory obligation into a true engine of innovation, growth and economic resilience. Backing down now would squander that opportunity and jeopardise a future that can — and should — be sustainable.
Author: Margarida Natal Mendes
References:
- European Commission (2025). Omnibus Directive Proposal – COM(2025) 80 final.
- WeAreEurope & HEC Paris (2025). CSRD Business Survey 2025 – Part 1. [Internal source, available upon request]
- European Parliament and Council of the EU (2022). Directive (EU) 2022/2464.
