Businesses and Investors Rally to Protect EU Sustainability Regulations

More than 100 companies and investors defended EU sustainability regulations, arguing they boost economic growth rather than hinder it. While some EU leaders propose weakening these rules, businesses like EDF and IKEA emphasize their importance for managing climate risks and promoting transparency and responsible business conduct.

More than 100 companies and investors have issued a warning against scaling back European sustainability regulations, arguing these rules support rather than hinder economic growth. As the EU debates cutting costs for local industries, businesses and financial institutions, including EDF, Nokia, and Allianz, stress the long-term value these rules offer.

European Union policymakers are currently considering relaxing corporate sustainability reporting rules, amid claims from some governments that stringent regulations deter productivity. However, a growing number of companies and investors contend these rules are crucial for managing climate risks and channeling investments towards the green transition. The regulations encourage transparency and responsible business practices, contributing to growth and improved risk management.

The coalition suggested the EU should enforce reporting requirements for companies with over 500 employees and mandate transition plans aligning with climate objectives. The European Commission has proposed exempting firms with fewer than 1,000 employees, which would significantly reduce the current coverage. Final changes to these regulations will require approval from both EU lawmakers and countries.

(With inputs from agencies.)