Statement by German Companies for Reliable Framework Conditions and Planning Security in the Transformation

To achieve a shift towards a sustainable and long-term competitive economy, we need uniform standards and a stable regulatory framework that enables investment and strengthens innovative capacity. We reject far-reaching and undifferentiated deregulation: it disrupts our planning and harms our resilience and competitiveness.

Instead, we require simplifications and harmonisation that work in practice, supporting companies in applying existing regulations. A sustainable transformation requires more than just a few frontrunners – it requires a comprehensive change across all sectors of the economy.

The following aspects should be considered when revising regulatory requirements:

• Preventing future costs and damages through early course-setting: Supply chain disruptions, infrastructure damage, and long-term climate change cause massive economic loss and present growing risks for us and our economy. Sustainability reporting provides the basis to change course now, before future regulatory interventions and climate change impacts become more drastic and costly and lead to competitive disadvantages.
• Avoiding business risks due to legal uncertainty and policy reversals: In recent years, we have invested significant resources in implementing new legal requirements. Internal reporting processes have been established and structures adapted. Legal uncertainty has a direct negative impact on our business operations and investment decisions.
• Standardisation instead of overburdening: Small and medium-sized enterprises should – in consideration of their more limited resources – be subject to graduated requirements in sustainability reporting. Rather than overwhelming companies with a multitude of voluntary reporting obligations and information requests from lenders and customers, uniform standards enable more efficient and comparable reporting.
• Long-term planning certainty through transparency: ESG risks are financial risks. That is why reporting obligations – and particularly transition plans – are essential. They foster trust and form the basis for long-term strategic decisions, business success, and the necessary financing.

We call on the new German federal government to advocate at both the national and European level for reliable and practical framework conditions for sustainable transformation.