Survey Finds Majority of Companies Oppose Omnibus Proposals to Scale Back CSRD Reporting

Key Takeaways

• Widespread Support for CSRD: 61% of respondents are satisfied with the CSRD in its current form, with only 17% expressing dissatisfaction.
• Opposition to Omnibus Proposal: Only 25% of respondents support the European Commission's Omnibus proposal to reduce the CSRD's scope. 51% believe significant changes are necessary.
• CSRD as a Strategic Tool: 89% of respondents believe the CSRD enhances transparency and strengthens companies’ ESG strategies.
• Request for Practical Adjustments: Key challenges identified include insufficient guidance, disproportionate burdens on smaller companies, and high compliance costs.
• Support for a 500-Employee Threshold: Many respondents, including those set to be removed under the Omnibus proposal, favor a 500-employee threshold over the proposed 1,000-employee limit.

Deep Dive

A recent survey conducted by #WeAreEurope, in partnership with HEC Paris, reveals that most companies across Europe are not in favor of the European Commission’s “Omnibus” initiative, which proposes reducing the scope of the EU’s Corporate Sustainability Reporting Directive (CSRD). While a majority of businesses express satisfaction with the CSRD in its current form, they have reservations about the Omnibus proposals, which aim to ease the regulatory burden on companies.

The survey gathered insights from over 1,800 business professionals involved in CSRD implementation across 26 European countries. The respondents included executives from a variety of sectors and company sizes, with 40% holding C-level positions. The findings suggest a strong desire from businesses to engage in the debate surrounding EU sustainability policies, particularly regarding the proposed reforms to the CSRD.

The CSRD, introduced as a key pillar of Europe’s sustainability strategy, has received broad support from companies. Despite some challenges in implementation, 61% of respondents indicated they are either very satisfied or satisfied with the CSRD’s current framework. Only 17% of respondents expressed dissatisfaction. Among finance professionals, generally more cautious in their assessments, just 27% were dissatisfied with the CSRD, compared to 14% in corporate social responsibility (CSR) functions.

The survey highlighted several strengths of the CSRD. Respondents overwhelmingly agreed that it improves ESG transparency and comparability for investors, with 89% endorsing its ability to strengthen companies’ ESG strategies and risk assessments. Notably, 90% of respondents acknowledged the CSRD’s potential to enhance Europe’s geopolitical influence by setting a global standard for ESG reporting.

Criticism of the Omnibus Proposal

The European Commission’s Omnibus proposal, which seeks to raise the threshold for companies covered under the CSRD from 250 to 1,000 employees, has sparked significant opposition. Only 25% of survey respondents expressed satisfaction with the Omnibus proposal, while 51% called for major revisions to the legislative framework. Notably, even companies that would benefit from the increased threshold—particularly those with 500-999 employees—were largely unsupportive of the proposed changes. Instead, there was greater support for a threshold of 500 employees, a change endorsed by 46% of respondents.

Survey participants voiced concerns about the Omnibus proposal’s lack of consultation and impact assessment, which they believe could undermine the effectiveness of the CSRD in driving Europe’s sustainability goals. The survey results indicated that businesses, especially those in CSR roles, want to continue contributing to the policy development process to ensure that the final regulation aligns with their operational realities without compromising Europe’s sustainability ambitions.

While the CSRD is generally well-regarded, businesses identified several areas for improvement. The most common criticisms centered on the lack of sufficient technical guidance for reporting, the disproportionate burden on smaller companies, and the time-consuming and costly nature of compliance. Among respondents who expressed concerns about these weaknesses, 86% supported the development of automated procedures to streamline data collection and report writing. Additionally, 82% advocated for reducing the number of mandatory ESG indicators within the European Sustainability Reporting Standards (ESRS).

The survey also revealed that the timeline for CSRD implementation is considered too tight by many companies. A slight majority expressed support for delaying the reporting timeline by one to two years, providing companies with more time to comply.

CSRD as a Strategic Asset

Despite the criticisms, many businesses view the CSRD as a valuable strategic tool. The directive is widely seen as an essential component for driving business transformation, improving sustainability performance, and enhancing transparency for stakeholders. Moreover, respondents believe that the CSRD’s potential as a geopolitical asset for Europe cannot be overstated, with its role in establishing Europe as a global leader in sustainability and ESG reporting.

The survey results emphasize the importance of stakeholder engagement in shaping EU sustainability policies. According to WeAreEurope’s survey leaders, including academics from HEC Paris, York University, and Copenhagen Business School, the overwhelming response from business leaders demonstrates that there is no technical or psychological barrier preventing companies from actively participating in policy development. They argue that comprehensive, reliable information from businesses is crucial for making informed policy decisions that align with both sustainability and competitiveness.

As the European Commission continues to deliberate on the Omnibus proposals, it is clear that while businesses support the CSRD’s overarching goals, they seek more practical, flexible solutions to reduce compliance burdens without undermining the regulation’s sustainability objectives.

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