The European Commission has proposed loosening corporate sustainability reporting requirements, exempting most companies currently covered, in an effort to boost economic competitiveness.
Eshe Nelson reports for The New York Times.
In short:
- The proposal would limit mandatory sustainability reporting to companies with over 1,000 employees and €50 million in revenue, exempting about 80% of firms currently covered.
- The commission aims to reduce regulatory burdens, citing concerns about economic growth, especially compared to the U.S. and China.
- The changes, which need European Parliament approval, are framed as simplifications rather than deregulation, maintaining alignment with the EU’s Green Deal.
Key quote:
“We cannot hope or expect to successfully compete in a perilous world with one hand tied behind our backs.”
— Valdis Dombrovskis, European commissioner for the economy
Why this matters:
The European Union has long positioned itself at the forefront of corporate climate accountability, pioneering regulations that require companies to disclose their environmental impact and take measurable steps toward sustainability. But recent shifts suggest a retreat from some of its more stringent oversight policies, signaling a recalibration of its approach amid mounting economic pressures.
Business groups argue that excessive regulation stifles growth, while environmental advocates warn that scaling back rules could weaken corporate transparency and climate action. The changes come as economic competition with the U.S. and China intensifies.
Related: Europe's push for a greener future amid rising protests
