European Executives Demand Tighter Sustainability & Due Diligence Rules

A recent E3G-YouGov survey of over 2,500 senior executives in France, Germany, Italy, Spain, and Poland reveals significant support for stronger sustainability and due diligence regulation. Most executives believe that environmental, social, and governance (ESG) obligations are not just for compliance, but a baseline for competitiveness and investment attractiveness.

About 63% of respondents favor requiring large companies to adopt legally binding climate transition plans, with even higher support (74%) among firms with 250–999 employees. Over half say improved sustainability reporting enhances access to capital, and many argue that it boosts brand value and both reputation and profitability.

Despite this widespread backing, business leaders are concerned about proposed changes in the EU’s Omnibus reforms. Many warn that raising thresholds or scaling back disclosure requirements could lead to misalignment with international standards, legal uncertainty, and delayed investment decisions.

The E3G-YouGov findings are important because they contradict the widely-reported narrative that European executives uniformly oppose stricter sustainability regulation. The 63 percent overall support for legally binding transition plans - rising to 74 percent among mid-sized companies - suggests a more nuanced business position: firms that have already invested in transition capability see stronger regulation as competitive protection, not burden.

The concern about EU Omnibus reforms is equally significant.

Raising thresholds or scaling back disclosure requirements creates legal uncertainty for companies that have already built compliance infrastructure aligned with the original rules, while diluting the competitive signal that made investment in sustainability capability commercially rational.

The next phase of the CSRD, CS3D and taxonomy simplification debate will determine whether European sustainability leadership is preserved or eroded.

For corporates preparing for or already reporting under CSRD, CS3D and taxonomy requirements, Cognitud's ESG strategy and transformation, sustainability due diligence and responsible investment teams help clients build resilient compliance architecture that maintains value across regulatory scenarios, engage constructively with policy processes, and prepare disclosures that position transition performance as a source of long-term competitive advantage.