Austria’s leading trade and industry bodies are urging the European Commission to review and simplify key environmental regulations under the Green Deal. Business leaders argue that excessive bureaucracy is hindering competitiveness and growth, calling for significant changes to ESG-related policies and reporting requirements. 

One of the primary concerns raised is the Corporate Sustainability and Due Diligence Directive (CSDDD), which mandates businesses operating in Europe to ensure their supply chains are free from environmental and human rights violations. The Austrian Federal Economic Chamber and the Federation of Austrian Industries have requested either a drastic simplification or complete removal of the directive. Additionally, they have called for revisions to regulations such as the Carbon Border Adjustment Mechanism (CBAM), the Deforestation Regulation, and laws targeting forced labor and packaging waste. 

These trade organizations argue that compliance with ESG reporting requirements has become overly complex. In a letter to EU commissioners, they emphasized the need to streamline the Corporate Sustainability Reporting Directive (CSRD), which compels companies to disclose their environmental and social impact. They also urged an immediate review of the EU’s sustainable investment framework to align it with major global markets, including the US, UK, and Asia. 

The insurance industry has joined the movement, pushing for a reduction in ESG reporting burdens. Insurance Europe, a leading trade association, has requested a halt to additional sector-specific reporting requirements and an extension of transitional relief to help businesses adjust to regulatory changes. 

As the EU shifts focus on global competitiveness, lawmakers remain divided. While some emphasize preserving climate targets, others argue that reducing bureaucratic red tape is essential for economic growth. The upcoming Clean Industrial Deal and sustainability package will likely determine the future of Europe’s carbon neutral strategy and broader ESG regulations. 

Sources : 

https://uk.news.yahoo.com/austrian-trade-industry-bodies-call-151928220.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAMOsisJGXgQy2B_A3o2WUL7kCHTJBRrvla-gREXsbcb_A-cOdTZmdbq3gh5cGDCl_Ku7FiVelhb6mKlaE4lKPX6diWzzXm9G1KwAGUxKjyF0RyATpHMmqUuphfG9jdBIx9hwN3wzWJlPx7wC0HUEvULLlI2it60Pg3vGVRNCupfC 

https://www.euronews.com/my-europe/2025/02/12/austrian-trade-and-industry-bodies-call-for-root-and-branch-review-of-green-deal-laws 

https://www.msn.com/en-gb/money/other/austrian-trade-and-industry-bodies-call-for-root-and-branch-review-of-green-deal-laws/ar-AA1yUgRE 

https://luminews.my/news/2925236