EU Businesses Back Lower Sustainability Reporting Thresholds, Stronger Rules
A recent survey reveals the stance of European entrepreneurs on sustainability reporting and due diligence. Half prefer a threshold of 500 small business ideas or less for mandatory sustainability reporting. Most support retaining substantial rules and believe large companies should seek data from smaller suppliers.
The survey found that indirect businesses further up the supply chain pose the most significant human rights and environmental risks, with 41% citing this as the key risk source, compared to only 18% for direct business partners. Six out of ten respondents supported sustainability reporting for their my business, provided the requirements are proportionate and meaningful.
Most EU-based entrepreneurs back more substantial sustainability reporting and due diligence rules than proposed by the European Commission's Omnibus simplification initiative. They believe strong due diligence rules may lead large companies to favor European suppliers. Businesses favor a lower threshold for sustainability regulations, with 70% suggesting the minimum company size should be 1,000 small business ideas or less. A majority, 63%, agreed that large companies should be required to plan their transition to a green economy.
Jurei Yada, Director and Head of EU Sustainable Finance at E3G, noted that European businesses view sustainability as a driver of competitiveness and an area where entrepreneurs and EU policymakers should lead globally.
The survey underscores European businesses' commitment to sustainability. They prefer lower thresholds for regulations and support comprehensive rules. This stance aligns with the view that sustainability drives competitiveness and should be a global leadership area for businesses and EU policymakers.
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