Less bureaucracy, more Impact: The EU simplifies sustainability rules
An opportunity for innovative companies
Source: European Commission
Date: 14/03/25
Date: 14/03/25
The European Commission has just announced a new package of reforms aimed at cutting red tape for businesses and boosting more effective investments in the green transition. With an estimated €6 billion in cost savings, the new measures focus on simplifying both the CSRD (Corporate Sustainability Reporting Directive) and the CSDDD (Corporate Sustainability Due Diligence Directive), streamlining compliance without compromising transparency.
CSRD: Less paperwork, more purpose
The key changes to the CSRD—Europe’s sustainability reporting directive—are designed to ease the administrative burden on businesses and make sustainability data reporting more efficient. Here’s what’s new:
- 80% of companies will be exempt from reporting obligations, allowing the focus to shift to large businesses with the biggest impact.
- SMEs will face reduced requirements, avoiding any knock-on effects along the supply chain.
- For companies already subject to CSRD, the reporting deadlines will be pushed back to 2028, giving them more time to get ready.
- More flexibility in the EU Taxonomy, supporting a smoother transition to sustainable practices.
CSDDD: Clearer rules for supply chain due diligence
The updated CSDDD—covering sustainability due diligence for supply chains—also aims to cut down on bureaucracy and simplify processes. Key highlights include:
- A focus on direct business partners only, avoiding the need to map the entire supply chain.
- Assessments every five years instead of annual reviews.
- Stronger protections for SMEs, reducing the volume of information they need to provide.
- Extended compliance deadlines, now set for 2028.
What’s Next?
- The proposed legislation will now go to the European Parliament and the Council for final approval. If adopted, these reforms are expected to reduce regulatory complexity and unlock over €50 billion in investment to support the sustainable transition.
Regg3: Turning compliance into Real Impact
Cutting bureaucracy is a move in the right direction. But to prevent sustainability from being seen as burdensome, elitist, or easy to dismiss, sustainability data needs to become a strategic tool. The goal isn’t just to talk about sustainability in reports—it’s to create real impact, shifting from storytelling to story-doing.
At Regg3, we believe sustainability should be more than just a regulatory obligation. It’s an opportunity to innovate and boost business performance. By integrating data and technology, we help companies measure and certify their regenerative impact—and turn it into a lasting competitive edge.
At Regg3, we believe sustainability should be more than just a regulatory obligation. It’s an opportunity to innovate and boost business performance. By integrating data and technology, we help companies measure and certify their regenerative impact—and turn it into a lasting competitive edge.