Practical EU Rules: Lessons from the Frontline of European Sustainability
European CSOs urge EU to simplify sustainability regulation, linking compliance with competitiveness and championing pragmatic, business-focused reforms
While Brussels continues to churn out sustainability directives and updates, businesses across Europe are grappling with a more pressing question: how do you actually make these rules work in practice? The answer, according to 28 Chief Sustainability Officers from across the continent, lies in less bureaucracy and more practical incentives.
The executives, who spend their days navigating complex EU requirements including the Corporate Sustainability Reporting Directive and Corporate Sustainability Due Diligence Directive, have released a joint paper calling for significant changes to how Europe approaches sustainability regulation. Their collective voice represents companies dealing with overlapping frameworks that often create compliance fatigue rather than drive meaningful environmental progress.
What Europe’s Top CSOs Want from the EU
After six months of consultation, the European CSO Network has produced ‘A View from Practitioners: Better Regulation for Stronger Implementation’ – a document that reflects the real-world challenges of implementing EU sustainability rules. The paper focuses on three key pieces of legislation: the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD) and the EU Taxonomy.
Simplify – reduce complexity and compliance fatigue that currently overwhelms businesses
Align – harmonise EU rules and align with international standards to avoid conflicting requirements
Engage – bring business-practitioner dialogue into policymaking processes
Incentivise – use market-based drivers to reward sustainability leadership
Enable – invest in capacity-building and collaborative action across industries
The timing of these recommendations comes as the European Commission is already working on an Omnibus simplification package that could exempt 80% of smaller companies from CSRD requirements and reduce administrative costs by €6.4 billion annually.
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From Compliance to Competitiveness: What Needs to Change?
‘We need to create some headspace for businesses and policymakers to focus on the role of sustainability in driving competitiveness,’ said one CSO Network member. This sentiment captures the fundamental shift these executives are advocating – moving from a purely compliance-based approach to one that sees sustainability as a business driver.
The paper identifies three critical areas where current EU approaches fall short. First, the omnibus proposals section highlights how overlapping requirements create unnecessary complexity. Companies report spending disproportionate amounts of time and resources trying to understand how different directives interact, rather than focusing on actual sustainability improvements.
Second, the connection between sustainability and competitiveness remains poorly developed in current policy frameworks. While businesses understand that environmental responsibility can drive competitive advantage, the regulatory environment often treats sustainability as a separate compliance exercise rather than integrating it into broader business strategy.
Third, the conditions for sustainable development are often missing. Companies need supportive frameworks that encourage experimentation and reward early adopters, rather than purely punitive measures for non-compliance.
Pragmatic Fixes: Inside the Recommendations
The CSO Network’s paper proposes specific solutions across three key areas that directly address the challenges businesses face daily.
Omnibus Proposals: Making Rules Work in Practice
The first section tackles the immediate usability problems with current directives. Companies need clearer guidance on assurance requirements – currently, businesses report confusion about what level of verification is required and when. The paper calls for better alignment between the CSRD, CSDDD and EU Taxonomy to reduce duplicate reporting requirements that consume resources without adding value.
The recommendations here mirror broader concerns about sustainability reporting overload that particularly affects smaller and medium-sized enterprises struggling to navigate multiple overlapping frameworks. This challenge is particularly acute for companies trying to develop audit-ready emissions data across different reporting standards.
Connecting Sustainability and Competitiveness
The paper’s second section addresses how sustainability policies can better support business competitiveness. The Carbon Border Adjustment Mechanism (CBAM), for instance, creates both challenges and opportunities for companies. While it increases administrative burdens, it also encourages businesses to develop cleaner supply chains and can provide competitive advantages for companies that invest early in low-carbon technologies.
Similarly, the upcoming Green Claims Directive and public procurement reforms could significantly impact how businesses position their sustainability credentials. The CSOs argue that these policies should be designed to reward genuine sustainability leadership rather than simply creating new compliance requirements.
Creating Conditions for Development
The third section focuses on enabling conditions that can help companies turn sustainability requirements into competitive advantages. The paper suggests regulatory sandboxes that allow companies to test new approaches while still meeting core environmental objectives. It also calls for better support for demand creation – helping consumers and business customers understand and value sustainability improvements.
The recommendations represent what the CSO Network describes as a ‘first milestone for collective voice’ – an unprecedented level of coordination among sustainability executives across European industries. This approach reflects broader trends in corporate supply chain sustainability where companies are moving beyond basic compliance towards more strategic environmental management.
What Happens Next: Dialogue with Policymakers
The CSO Network has extended an invitation to EU policymakers, business leaders and civil society to join ongoing discussions about better linking sustainability and competitiveness. The next major opportunity for this dialogue will be the European Sustainable Industry Summit, rescheduled to 23-24 October following recent industrial action.
CSR Europe, which facilitates the CSO Network, has positioned itself as a key bridge between business experience and European policymaking. The organisation’s approach emphasises multi-stakeholder collaboration as essential to achieving sustainable and competitive European markets.
The network’s approach to engaging policymakers represents a significant evolution from traditional lobbying. Rather than simply opposing regulations, the CSOs are proposing specific improvements based on their implementation experience.
Why Decision-Makers Should Pay Attention
The daily reality for Chief Sustainability Officers involves translating complex EU directives into actionable business strategies. Their collective message is clear: regulations should make this job easier, not harder. The current system often forces companies to focus on compliance mechanics rather than the environmental and social outcomes that the rules are meant to achieve.
The CSO Network’s recommendations offer a pathway toward sustainability rules that genuinely support both environmental goals and business competitiveness. As one network member noted, the aim is to create regulatory conditions that help companies see sustainability as a source of competitive advantage rather than just another compliance burden.
This approach aligns with broader thinking about corporate social responsibility that goes beyond simple compliance to create genuine business value through environmental stewardship.
For policymakers, industry leaders and businesses looking to engage with these recommendations, the full paper is available at CSR Europe’s website. The document represents months of collaboration among sustainability executives who understand both the importance of environmental regulation and the practical challenges of implementation.
The conversation between Brussels and business on sustainability regulation is entering a new phase. The question now is whether EU institutions will embrace the practical wisdom of those charged with making these rules work on the ground.
