France is under fire for reportedly considering a rollback of key EU sustainability reporting regulations, raising concerns among environmental groups and business leaders. The Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CS3D) require companies to disclose their environmental and social impact. However, as the EU prepares an ‘Omnibus simplification package' to ease regulatory burdens, critics fear France may push for the outright removal of these rules.
French Minister Stéphane Séjourné, a close ally of President Emmanuel Macron, recently suggested that the Omnibus package could include a "complete deletion" of the CSRD and CS3D reporting obligations. His comments sparked immediate alarm among companies in the ESG sector, including green technology firms and sustainability-focused investment funds. A source later claimed the controversy arose from a translation error, arguing that Séjourné had meant "modification," not "deletion." However, internal documents reportedly show that France is advocating for delaying the directives, adding to the uncertainty.
Macron himself has called for a break on regulation, arguing that Europe must improve its competitiveness. The potential weakening of ESG rules aligns with opposition from Germany and several Eastern European countries, which fear the regulations could burden their industries. Some experts, however, say reforming the system—rather than scrapping it—would be a better approach. Alexis Normand, CEO of carbon accounting firm Greenly, suggests clearer industry guidelines and reduced auditor reliance could lower compliance costs by up to 80 per cent while preserving sustainability commitments.
The debate is unfolding against a broader trend of growing resistance to climate policies in Europe, which some analysts link to the influence of Trump-era politics. Energy consultant Stéphane His warns that "Trumpism is already penetrating European environmental politics," citing growing opposition to organic farming, electric vehicles, and renewable energy initiatives. Meanwhile, US officials have criticized the EU's ESG regulations, arguing they unfairly disadvantage American companies.
Critics say France's shift on ESG rules represents a major reversal. The country was once a leading advocate of corporate sustainability reporting but now appears to be aligning with German industrial interests and right-wing opposition. This perceived backtracking has sparked outrage among NGOs, trade unions, and even members of Macron's own political coalition. Over 160 civil society groups have signed a letter condemning the potential rollback, while former Europe Minister Clément Beaune slammed the move as "light Trumpism."
As the EU prepares to unveil the Omnibus package on 26 February, all eyes are on France. Whether the government follows through with a full-scale retreat or opts for a more measured reform could have lasting consequences for Europe's corporate sustainability landscape.