Amid ferocious political horsetrading over amendments to “cut red tape” in the EU’s corporate sustainability directives, a new E3G poll conducted by YouGov exposes the disconnect between drastic “simplification” measures on the table and what European companies actually want.
A new YouGov survey of 2,500 European business leaders, commissioned by independent climate think tank E3G, shows widespread support for maintaining robust corporate sustainability and due diligence rules despite some EU policymakers pushing to slash requirements.
On issues such as climate transition plans and mandatory sustainability reporting, business leaders’ opinions directly contradict proposals currently being negotiated as part of the Omnibus Simplification Package.
63% of business leaders believe it is fair for large companies to be required to implement a plan to transition to a green economy.
Business leaders are twice as likely to believe that becoming more environmentally sustainable is important for their company’s competitiveness, with over half (55%) thinking it is important, and half (50%) believing that regularly collecting and reporting sustainability data helps attract investment.
Over two thirds (68%) of business leaders believe that the EU and European companies should set a global example for sustainability standards in business practices, versus just 10% who disagree.
Business leaders show a preference to keep sustainability reporting thresholds far lower than what policymakers are proposing, with a minimum of 250 employees the most popular company size threshold for mandatory reporting under the Corporate Sustainability Reporting Directive (CSRD), and just 15% choosing a scope of 2000 or 3000+ employees.
Read the full report: What European business leaders think about the EU’s corporate sustainability and due diligence rules
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For anyone following climate policy in Brussels, the Omnibus has been the talk of the town since early 2025. While policymakers clash over how far to go in simplifying corporate sustainability and due diligence rules, and the Trump administration continues to push for the weakening of EU rules, the core question remains unanswered: Where is the sweet spot between simplifying rules for businesses and maintaining the EU’s leadership position on climate?
The survey of business leaders suggests the optimal balance that companies want is a far less drastic cutback than the options policymakers are putting on the table.
The poll of over 2,500 business leaders shows that companies think sustainability measures bring competitive advantages and support strong, clear reporting standards. The survey was conducted in August 2025, with a range of differently sized companies across five major European economies (Germany, France, Italy, Poland, Spain).
Key findings
Over half (55%) of business leaders believe 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.
50% of business leaders believe that regularly collecting and reporting sustainability data helps attract investment, versus 18% who disagree. This rises to over two thirds (68%) of business leaders of mid-to-large companies (250-999 employees), and over six in ten (62%) for business leaders of very large companies (1000+ employees).
Business leaders also view the rules as a boost to European business over the rest of the world: Over half (53%) of business leaders believe strong EU due diligence rules would likely lead large companies to favour suppliers from the European Economic Area, while just 12% disagree. For companies with operations or supply chains outside the EU, over six in ten (62%) believe that strong EU due diligence rules would favour European suppliers.
Twice as many companies 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, with 48% agreeing and just 21% disagreeing. This rises to 59% among companies with operations and supply chains outside the EU agreeing.
EU policymakers should lead the charge globally
Businesses show a clear preference for Europe to lead rather than follow when it comes to setting international standards on doing clean, competitive business. More than two thirds (68%) of business leaders believe that the EU and European companies should set a global example for sustainability standards in business practices, versus just 10% who disagree. Two thirds (66%) of Small and Medium-sized Enterprises (SMEs, with less than 250 employees) agree, and only 10% 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.”
On one of the most contentious issues in the Omnibus – the question of companies’ climate transition plans – business leaders’ opinions directly contradict proposals on the table. Suggestions from policymakers include making the plans voluntary, allowing them to not be based on science, or even scrapping them completely. But the survey results show that these plans are not the thorn in the side of business leaders that some policymakers think: More than three in five (63%) business leaders agree it is fair for large companies to be required to implement a plan to transition to a green economy, while just 11% disagree. When it comes to mid-to-large companies, almost three quarters (74%) agree, and almost two thirds (65%) of very large companies agree.
The same trend is replicated on several other specific issues of the Omnibus, for example, on the debates over the threshold for companies to be required to do sustainability reporting under the CSRD. The most popular threshold chosen by almost one third (31%) of all companies surveyed was 250 employees – drastically contradicting the 1,000-employees criteria proposed by the European Commission. For SMEs, 250 was by far the most popular threshold (34%). The majority (56%) of very large companies with 1000+ employees support a reporting threshold set at any level among the choices offered up to and including 1000 employees. Notably, only a small minority (15%) of business leaders wanted a threshold to be set at a level of 2000 or more employees.
Broad support for sustainability reporting
The survey shows support for sustainability reporting, with almost six in ten (59%) business leaders supporting sustainability reporting for their company if it is proportionate and the data is meaningful, with only 13% disagreeing. This rises to seven in ten (70%) for mid-to-large companies. Two thirds (66%) of very large companies (with more than 1000 employees) agree that all companies with 1000+ employees should be required to conduct meaningful sustainability reporting, only 15% disagree.
With the Council having already set out its position on the Omnibus, the European Parliament is set to define its negotiating mandate in October. Negotiations on the Omnibus are expected to conclude by the end of the year. And this process has consequences for businesses: Nearly half (48%) of business leaders say that current legal uncertainty around sustainability reporting is delaying their investment decisions. This issue is particularly acute for larger companies, with over six in ten (63%) of mid-to-large companies agreeing, and nearly three in five (59%) leaders from very large companies agreeing.
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.”
Peter Søndergaard Andersen, Head of Sustainability at TDC NET, said: ““At TDC NET, we believe that ESG reporting and competitiveness are not in opposition to each other. We believe ESG reporting gives European companies like ours a competitive edge, giving us, our investors, and our customers the data to measure our progress towards our targets. In a time where the effects of climate change and biodiversity loss are becoming increasingly evident, it is important that we stick to measuring our progress and create a strong data foundation to take the most impactful actions.”
“Scaling back on ESG reporting and data in the EU is not the right way towards a green and sustainable future operating within the planetary boundaries. The EU is not doing companies a favour by reducing ESG reporting demands significantly. A consistent and robust EU reporting framework will be much more efficient for companies going forwards.”
Katharina Reuter, Managing Director of the German Sustainable Business Association (BNW), said: “The majority of the European economy is making a statement in favor of ambitious reporting requirements. Entrepreneurs expect strong standards from the EU and see this as a competitive advantage for themselves. The omnibus must therefore provide the framework for the practical implementation of due diligence obligations, but not a constant debate about watering down and exceptions through higher thresholds.”
– ENDS –
Jurei Yada, Director of Member State Engagement & Head of EU Sustainable Finance, E3G. jurei.yada@e3g.org
Notes to Editors
A breakdown of the results can be found in this report. The full dataset is available upon request.
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