GBP Monitor in January 2025: Expensive Reporting Obligations Slow Down Sustainable Investments

In response to considerable pushback from corporations, the EU Commission declared that it would implement major reductions in sustainability reporting requirements by the end of 2024. The initiative known as “Omnibus” seeks to cut the requirements by a minimum of 25 percent. The guidelines concerning sustainability reporting (CSRD), due diligence in supply chains (CSDDD), and the EU taxonomy are among those impacted.
According to the most recent findings from the German Business Panel (GBP), there is a growing discontent among German companies: by the second half of 2024, the percentage of businesses expressing a negative view of the CSRD increased by nearly 12 points, reaching 67.6 percent. A mere 12.6 percent maintain the view that the regulations have the potential to enhance sustainability. Consequently, the backlash comes not from companies that oppose sustainable business models, but rather from those that are already implementing a sustainability strategy.