12 September, 2025

The messaging from proponents of the proposed changes to the EU sustainability regulations has revolved around the same points in recent months: they are too complex, too burdensome, and need to be simplified. You might think that the audience that would be most receptive to this are businesses who are required to use these regulations for reporting – after all it is they who will face the ‘burden.’ So it’s interesting to see a chorus from the business world pushing back. H&M, Aldi South, and more than 200 other companies are telling the EU not to dismantle the rules that make Europe’s economy strong and trustworthy. 

In an open letter this week, they urge the European Commission to protect the backbone of the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD). Both are under review as part of the Omnibus plan, which seeks to slash reporting burdens by up to 35% for SMEs and 25% for larger firms. Brussels says that’s cutting red tape. Critics say it jeopardizes the delivery of the Bloc’s green deal ambitions.  

“Sustainability rules are not red tape; they are the foundation for long-term competitiveness and for the transition to a sustainable, thriving economy”, says Anke Ehlers of Aldi South. “Shared standards create trust, give customers and investors confidence and ensure businesses compete on a level playing field”. 

Signatories of the letter include EDF, H&M Group, Decathlon, L’Occitane Group, Ingka Group (Ikea), Nestlé, Nokia, Oatly, and Triodos Bank, as well as advocacy groups such as Eurosif, IIGCC, and the Global Reporting Initiative. 

The companies argue that rules can be simplified without stripping their substance. They want to maintain double materiality assessments, keep the 500-employee threshold, align EU rules with global standards, and safeguard risk-based due diligence and transition plans, which go beyond emissions targets, embedding decarbonisation into operations, investments, and workforce planning. 

The message is clear: for many businesses sustainability is not a burden, it is a competitive advantage worth protecting. The omnibus can be a win but only if it balances simplicity with transformation. Regulation should make change easier, not optional. 

By Meg Seckel