The EU’s sustainability rollback is a retreat disguised as simplification

The European Commission’s ‘Simplification Omnibus’ proposal, unveiled on 26 February, was presented as a necessary step to reduce the regulatory burden on businesses and enhance European competitiveness. By amending key sustainability directives – including the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD) and the EU Taxonomy Regulation – the Commission claims to be streamlining compliance processes for companies.

However, beneath the rhetoric of simplification lies a profound retreat from the EU’s sustainability commitments. The proposal significantly weakens corporate transparency, accountability and long-term economic credibility, undermining years of progress in environmental, social and governance (ESG) regulation. 

Apostolos Thomadakis is Head of Research at ECMI and Research Fellow at CEPS.