Most European businesses have voiced opposition to the European Commission’s Omnibus proposals, which aim to ease the sustainability reporting obligations under the Corporate Sustainability Reporting Directive (CSRD), according to a new survey conducted by professional network #WeAreEurope in partnership with HEC Paris.
According to ESG Today, the study gathered insights from over 1,000 business leaders across 26 European countries, representing companies of varying sizes and sectors. Around 40% of those surveyed held C-level roles and were directly involved in implementing CSRD compliance measures.
Released in response to the Commission’s Omnibus I package unveiled in February, the survey reveals strong backing for the current CSRD framework, despite regulatory efforts to scale it back. Key proposals under Omnibus include raising the employee threshold from 250 to 1,000, which would exempt approximately 80% of currently covered companies, and cutting back significantly on data requirements under the European Sustainability Reporting Standards (ESRS).
Yet, the majority of executives surveyed — 61% — reported being somewhat or very satisfied with the CSRD in its current form. Even among firms that would fall outside the revised scope, only a small portion expressed dissatisfaction: 25% of firms with 250–499 employees and 17% of those with 500–999 employees.
Respondents widely recognised the benefits of the CSRD. A striking 89% agreed that it enhances ESG transparency for stakeholders and strengthens ESG strategy, risk assessments, and impact management. Meanwhile, 88% said the directive supports Europe’s broader sustainability goals, and 80% agreed it is an effective mechanism to help the continent reach its environmental objectives.
While support for the regulation is high, the report also highlighted areas for improvement. The most cited challenge was the lack of guidance on how to meet reporting obligations, flagged by 69% of participants. Additionally, 63% believed the reporting requirements are too burdensome for smaller firms and overly time-consuming and expensive. However, only 37% said the CSRD creates a competitive disadvantage for EU companies versus international counterparts.
Crucially, only 25% of executives expressed satisfaction with the Omnibus proposals, with over half stating they were dissatisfied. Support for the key proposal to restrict CSRD coverage to companies with over 1,000 employees was especially low, even among companies that would benefit from the change. In contrast, 46% supported raising the threshold to 500 employees — a figure that jumped to 53% among firms with 500–999 employees.
Executives also proposed practical improvements. Among those who found CSRD too complex, 86% backed automation for data collection and reporting, while 82% supported cutting the number of mandatory ESRS indicators.
HEC Paris professors and study co-leads François Gemenne and Brian Hill stressed the importance of inclusive policymaking. “In a context of geopolitical headwinds, the EU is currently faced with tough choices about the future some of its most ambitious sustainability-related policies, notably the CSRD,” they said. “The EU’s decisions on the CSRD will have far-reaching consequences for businesses across the Union; their diverse perspectives should thus be heard and considered.”
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