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Artikel

28 Apr 2025

Autor:
By Natalie Runyon, Thomson Reuters (Canada)

EU: "Omnibus" package based on "misleading narrative" prioritising short-term cost savings over long-term value creation & competitiveness - op-ed

“EU’s omnibus proposal: Debunking the myth that sustainability compliance hinders competitiveness”

Framing sustainability reporting and due diligence as costly burdens that can hinder competitiveness is misleading — the reality is much more nuanced...

Critical views of the omnibus proposal vary widely, but agreement among the vocal chorus of dissenters is emerging. “The main issue at the heart of the EU’s omnibus discussion is not the intention to simplify,” stated says Andreas Rasche, Professor of Business in Society & Associate Dean at Copenhagen Business School in recent post, adding that streamlining regulations can indeed facilitate better alignment and implementation. “The narrative that reporting and due diligence are a costly burden that hinders competitiveness is misleading and misguided. This inaccurate perception is the root of the problem, rather than the desire for simplification itself.”…

By highlighting the cost narrative, critics of regulatory measures construct an inaccurate binary choice between obtaining dependable sustainability information and remaining competitive in the market. In reality, there is limited evidence to support the claim that reducing reporting costs will lead to increased competitiveness…

… compliance costs tend to decrease over time as companies develop routines, overcome initial setup costs, and industry experts establish best practices. Therefore, from a cost perspective, rolling back regulations shortly after implementation doesn’t make sense….

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