French President Emmanuel Macron has joined German Chancellor Friedrich Merz in calling for the elimination of the EU’s Corporate Sustainability Due Diligence Directive (CSDDD), a move that could reshape the future of ESG compliance and the EU’s carbon neutral strategy. 

Speaking at the “Choose France” International Business Summit, Macron argued that CSDDD should be “put out of the table,” not merely postponed. He emphasized the need to reduce regulatory burdens to maintain global competitiveness with the U.S. and China. 

Initially adopted in May 2024, the CSDDD mandates companies to address environmental and human rights risks across their value chains, including issues like child labor, deforestation, and carbon emissions. The directive was already significantly weakened before its adoption—limiting applicability to companies with over 1,000 employees, instead of the originally proposed 500—excluding roughly 80% of businesses. 

Macron’s remarks reflect growing pressure from EU member states to ease sustainability-related obligations. As part of the European Commission’s Omnibus simplification process, implementation of CSDDD has already been delayed to 2028, with additional proposals to narrow due diligence requirements to direct business partners and reduce monitoring frequency. 

Critics argue that rolling back CSDDD could undermine the EU’s ESG leadership and carbon neutral goals. However, proponents claim it would alleviate unnecessary compliance strain on businesses during economic recovery. 

Macron’s call for complete elimination of the law—not just reform—signals a major policy pivot and may prompt further regulatory rollback across the EU. 

As global ESG and sustainability expectations evolve, the EU now faces a critical decision: uphold its leadership in responsible business practices or align more closely with deregulation trends driven by economic and political pressures. 

Source: 

https://www.esgtoday.com/frances-macron-joins-germanys-call-to-scrap-eus-supply-chain-sustainability-due-diligence-law/