Stockholm (NordSIP) – The battle over the proposed simplification of European Union (EU) sustainable finance rules intensified on 2 September 2025 with the publication of a joint statement by almost 500 organisations calling for key components of the original legislation to be preserved.
The collection of signatories and the publication of the statement were coordinated by the European Sustainable Investment Forum (Eurosif), the Institutional Investors Group on Climate Change (IIGCC), the Principles for Responsible Investment (PRI), the Corporate Leaders Group Europe (CLG Europe), the Global Reporting Initiative (GRI), and independent climate change think tank E3G.
The European Commission has been arguing that its ‘Omnibus’ simplification package will ensure that European companies’ global competitiveness is not jeopardised by the potential administrative burden inherent in the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD). It proposes increases to staff size and turnover thresholds to effectively remove around 80% of companies from the red tape requirements of the CSRD and CSDDD, along with other measures to provide exemptions or prolong the implementation timeframe. Civil society organisations have thus far lodged several complaints with the EU Ombudsman regarding the Commission’s apparent disregard for the proper EU guidelines for the approval and implementation of legislative changes.
Rather than hindering companies’ competitiveness, the 475 signatories of the latest statement argue that greater transparency and responsible business practices will help make EU firms more resilient. The signatories include 130 institutional investors, 87 companies, 92 supporting organisations, and 166 service providers, all of which are urging the Commission to preserve the integrity of proposed rules on sustainability reporting, climate targets, transition plans, and corporate due diligence. While acknowledging the potential benefits of simplifying the rules, the signatories put forward an alternative list of measures that may achieve this without excessively diluting the legislation. They insist that double materiality reporting across all ESG topics must be maintained, thereby ensuring interoperability with international standards and frameworks such as the GRI, International Sustainability Standards Board (ISSB) and Taskforce on Nature-related Financial Disclosures (TNFD).
The statement has been signed by many Nordic institutions, including AP7, Nordea Asset Management, AkademikerPension, LD Pensions, and the Church of Sweden, whose Head of Sustainable Investing Linda Sundberg commented: “A bold EU target sends a strong message that Europe is committed to a just and science-based transition — one that reflects our shared responsibility for creation and for future generations.”
