European Businesses Back Stricter Sustainability Regulations
European entrepreneurs have voiced their support for stricter sustainability regulations, with a majority favoring lower thresholds for small business ideas coverage and mandatory transition plans to a green economy. A recent survey revealed these preferences, indicating a shift in corporate attitudes towards sustainability.
Over 70% of surveyed entrepreneurs suggested a threshold of 1,000 employees or less for small business ideas to be covered by sustainability regulations. This is lower than the current EU threshold of 500 employees for the Corporate Sustainability Reporting Directive (CSRD). Moreover, 63% of respondents believe it is fair for large companies to be required to implement a plan to transition to a green economy.
Support for sustainability reporting was also high, with 60% of respondents backing such measures, provided they are proportionate to business size and the data is meaningful. Half of the surveyed entrepreneurs preferred a threshold of 500 employees or less for mandatory sustainability reporting.
Jurei Yada, Director and Head of EU Sustainable Finance at E3G, commented that European entrepreneurs view sustainability as a genuine driver of competitiveness, not merely a compliance exercise.
When it comes to human rights and environmental risks, indirect businesses further up the supply chain were most commonly cited, at 41%, compared to only 18% citing direct business partners. More than half of companies agreed that large companies should be allowed to request relevant sustainability data from smaller suppliers, if it is proportionate.
Some European entrepreneurs, including those engaged through platforms like the Deutscher Nachhaltigkeitskodex (German Sustainability Code), advocate for comprehensive disclosure aligned with European Sustainability Reporting Standards (ESRS) and the Corporate Sustainability Due Diligence Directive (CSDDD). They emphasize detailed environmental, social, and governance aspects and mandatory reporting and transition planning.
The survey results indicate a growing consensus among European entrepreneurs for more stringent sustainability regulations. They support lower thresholds, mandatory transition plans, and comprehensive reporting. These findings suggest that entrepreneurs are increasingly recognizing the importance of sustainability in their operations and supply chains.
