European Business Leaders Back Strong Sustainability Rules, Survey Finds

Key Takeaways

• Sustainability as a Competitive Edge: 55% of business leaders say environmental sustainability strengthens competitiveness, with higher support among mid-to-large firms and those with global supply chains.
• Investment and Reputation Benefits: Half of respondents believe sustainability reporting attracts investment, while 59% see reputational and profitability gains.
• Support for Strong Obligations: 63% say it is fair to require large companies to adopt climate transition plans and 53% believe strong due diligence rules would encourage sourcing from European suppliers.
• Broader Reporting Scope Favored: A plurality (31%) back CSRD reporting for companies with 250+ employees, rejecting higher thresholds under the EU Omnibus package.
• Omnibus Concerns: 42% warn it risks diverging from global standards, while 48% say legal uncertainty around sustainability reporting is delaying investment decisions.

Deep Dive

A new survey of European business leaders shows overwhelming support for robust corporate sustainability and due diligence rules, countering efforts in Brussels to pare back environmental and reporting requirements under the EU’s Omnibus simplification package.

The E3G-commissioned YouGov survey, conducted in August 2025 across Germany, France, Italy, Spain, and Poland, polled more than 2,500 senior executives. Its findings are unambiguous—European businesses see sustainability not as a burden, but as a competitive advantage.

More than half of respondents (55%) said becoming more environmentally sustainable is important for their company’s competitiveness, compared with just 21% who view it as unimportant. This sentiment was particularly strong among mid-to-large companies, where nearly three-quarters said sustainability boosts their competitive position.

For firms with global supply chains, the link was even clearer. Nearly seven in ten companies with operations outside the EU said sustainability is good for their competitiveness, as did 61% of those who see the biggest environmental and human rights risks occurring deeper in their supply chains.

Investment, Reputation, and Global Leadership

Half of business leaders believe regular sustainability reporting helps attract investment, while a majority (59%) see benefits for their reputation and profitability. Two-thirds (68%) want the EU and European firms to set a global example on sustainability standards, underscoring a belief that Europe should lead, not lag, in defining responsible business practices.

This belief extends to geopolitics. Nearly half (48%) of executives said binding environmental and social standards could give the EU a long-term competitive edge over China and the U.S.

Large companies are also expected to carry greater responsibility. Sixty-three percent of respondents agreed it is fair to require big firms to adopt climate transition plans, while strong due diligence rules were seen as a potential boost to European suppliers. Over half (53%) believe such rules would encourage large companies to source more from within the European Economic Area due to easier compliance.

Scope of Reporting Obligations

One of the most striking findings is where companies place the threshold for mandatory sustainability reporting. A plurality of respondents (31%) back the Corporate Sustainability Reporting Directive (CSRD) applying to firms with 250 employees or more, aligning with the original directive rather than higher thresholds proposed under the Omnibus. Only 15% supported thresholds of 2,000 employees or more.

Notably, 59% of business leaders said they support sustainability reporting for their own companies as long as it is proportionate to size and the data is meaningful, with support spanning SMEs, mid-sized firms, and large corporates alike.

Despite this broad backing, the survey also points to rising frustration with EU policy uncertainty. Forty-two percent of executives warned that the Omnibus risks diverging from international standards such as the OECD guidelines, adding compliance costs and risks. Nearly half (48%) said uncertainty around sustainability reporting is delaying investment decisions, an issue felt most acutely by mid-to-large companies.

E3G summed up the survey with a simple takeaway, “Sustainable business is competitive business.” The results show that, far from resisting sustainability requirements, European companies increasingly see them as key to securing investment, strengthening supply chains, and positioning the EU as a global leader in responsible business practices.

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