Conference: “ Simplifying the CSRD - an operational perspective ” |Cross-Industry Feedback | Brussels – March 25 at 2:30 - 4:30 PM - Room ASP5G1
Address: European Parliament, Altiero Spinelli Building,Rue Wiertz 60, Brussels;
On February 26, 2025, the EuropeanCommission introduced the Omnibus proposal, aimed at simplifying sustainabilityregulations, particularly the CSRD and CSDDD directives.
While still in the early stages of the legislative process, this initiative has sparked debates about its impact on corporate practices and transparency regarding social and environmental impacts.
However, on the ground, the initial feedback regardingthe first implementation of those legislations is largely positive: as the number of CSRD-compliant reports continues to grow, 80% of French companies surveyed now express satisfaction (based on a February consultation of 300 companies).
The conference brought together committed stakeholders from various sectors to share their operational insights:
● A major corporation actively engaged in thetransition, offering a firsthand account of how it has simplified and optimizedits practices.
● Impact investment funds leveraging data at thecore of its investment strategies.
● German and French technologycompanies enabling large-scale ESG compliance.
● A European policymaker providing insights intoregulatory challenges and their practical implementation.
● A civil society organization representingstakeholder voices and high standards of accountability.
https://www.youtube.com/watch?v=dpH0Ei3BoL4
● Pascal Canfin, Member of the EuropeanParliament
● Philippe Zaouati, CEO – Mirova
● Markus Adler, CEO & Co-Founder – CodeGaia - German ESG tech leader
● Alexis Normand, CEO – Greenly - Europeancarbon accounting leader
● Linda Schmalbrock, Investment Principal &Head of Sustainability, Lea Partners
● Elodie Le Breton, Strategy Director - GA SmartBuilding
● Dr Nadine-Hagemus Becker, Head ofSustainability, Schauenburg
● Alexia Delahousse, Vice-President at Qonto
● Marcel Kanthak, Sustainability Manager,Wildboer Bauteile
● DollyEmmanuelle Betmi, CSRD Manager, Monin
● LudovicFlandin, Director CSRD R3 et Coordinator WeAreEurope
● Helena Charrier, Vice-President FIR and boardmember Eurosif
In the wake of the European Commission’s Omnibus Proposal (Feb 26, 2025), aimedat simplifying sustainability regulations—most notably the CSRD (Corporate Sustainability Reporting Directive)—across-sectoral dialogue was held at the European Parliament to assessoperational implications. The event, hosted under the banner "Making CSRD SimplerOperationally," brought together leading voices from Europeanindustry, investment, civil society, and regulatory bodies.
● Widespread Support for a Unified Framework:
Despitecriticism of regulatory overreach, the overwhelming consensus affirmed theCSRD’s strategic value. Companies,from impact investors to industrial mid-caps, stressed that harmonized, comparable, and auditable ESGdata is not only essential for sustainability—but also a driver of competitiveness, innovation, andinvestment readiness.
● Simplification, Not Rollback:
Participantswelcomed simplification efforts, especially for mid-sized firms, but warned against the risk of weakening the directive’s scope and ambition. Concerns wereraised that the proposed threshold increase to 1000 employees would exclude a vast number of companies withsignificant environmental and social impact, thereby undermining data qualityand investor transparency.
● Operational Maturity Emerging:
Contrary tofears about complexity and cost, several companies reported that CSRDimplementation has already been streamlinedvia digital tools and automation. Case studies from software providers andearly adopters showed costs as low as€5,000–€10,000 for SMEs, with significant ROI reported (up to 19x per euroinvested, according to BCG).
● Audit Reform is Crucial:
Multiplespeakers criticized the current audit framework as too burdensome and compliance-driven, especially for SMEs.Recommendations included certifyingsoftware tools and shifting auditstoward performance-focused reviews. The high cost of audits (sometimesexceeding €50k) was cited as a key barrier to broader adoption.
● Call for a Three-Tier Approach:
Policymakershinted at a potential compromise:introducing a middle category (250–1000employees) with lighter, but still mandatory, reporting requirements. Thiswould retain pressure on the "backbone" of European industry whileoffering simplified templates and automation pathways (e.g. the VSME standard).
● Strategic Risk of Delay:
Stakeholdersfrom tech, finance, and real economy sectors stressed that delaying CSRD implementation or excluding key segments may create atwo-speed Europe, deepen dependenceon non-EU data providers, and weaken Europe's sovereignty in ESG andAI-driven innovation.
The conference reaffirmed that sustainability reporting is not acompliance burden, but a strategiclever for resilience, risk management, and value creation. Attendees urgedEU policymakers to anchor simplificationin operational realism, without compromising on double materiality, transition planning, and auditability. Thesession concluded with a clear message: clarity,proportionality, and consistency—not deregulation—will unlock CSRD’s fullpotential for European competitiveness.
Zaouati emphasized the central role ofdata in investment decisions. Without CSRD, investors are often forced to“guess” or fill in ESG data gaps using proxies. He warned that in the absenceof standard reporting, AI-based third-party estimations—often from USfirms—will dominate the narrative, leaving companies with no control over howthey're perceived. For Zaouati, CSRD is a matter of European competitivenessand data sovereignty, not just compliance.
Adler shared the perspective of a companysupporting 350+ SMEs in Germany. He expressed concern that the Omnibus proposalwould cause mid-sized firms to disengage from sustainability due to no longerbeing under obligation. Based on field evidence, companies that began CSRDpreparations experienced strategic benefits—moving from defensive compliance toproactive opportunity-seeking. He cited a BCG study showing that €1 invested insustainability reporting can return up to €19 in value.
Normand provided concrete figures fromover 3000 companies using Greenly’s platform. He stressed that the costs andtime commitments are reasonable: around €10,000 for medium companies and €5,000for SMEs, requiring only 10–15 days of project manager time. Normand advocatedfor software certification instead of burdensome audits, which can add€40,000–€50,000 in costs. He suggested simplification through subtractivesectoral materiality and criticized over-reliance on voluntaryadoption—“simplification must not mean exclusion.”
Schmalbrock explained that many portfoliocompanies had prepared for CSRD only to find themselves excluded under the newproposal. She underscored that sustainability neglect equals riskneglect—impacting supply chains, raw material access, and long-term viability.She called for mandatory engagement from companies with more than 250employees, supported by simplified onboarding tools like VSME, and warned thata two-year delay would stifle momentum.
As a mid-sized French company (800employees), Le Breton offered a case study: CSRD helped consolidate 300+ ESGKPIs into a unified, strategic ESG roadmap. The process was “smooth anduseful,” demonstrating that the CSRD is a transformation tool, not just a legalburden. However, she criticized the audit process as overly bureaucratic,costly, and too focused on control over performance. She recommended moredialogue-oriented audits, especially for SMEs.
Representing a conglomerate of 15companies, most with <50 employees, Hagemus-Becker spoke of the overwhelmingburden CSRD placed on smaller entities. She welcomed the Omnibus’ data andaudit simplifications, warning that data collection had sometimes interferedwith operational continuity. Nevertheless, she reaffirmed the group’scommitment to sustainability and supported a reduced but standardized set ofindicators and a fully digital reporting infrastructure.
Qonto, a scale-up nearing CSRDthresholds, voluntarily initiated reporting in 2024. Delahousse emphasized theneed for clear cost benchmarks and market norms, noting massive disparities inexternal consulting quotes (up to 10x differences). She advocated upfrontinvestment in materiality assessments and more discretionary flexibility foryoung, fast-growing firms facing transparency risks.
Betmi stressed the need to reframe CSRDas a value creation exercise, not a compliance burden. She drew on experienceat a legacy French firm and highlighted how modern software and trained projectmanagers have reduced reporting complexity. CSRD helps position firms asleaders in tenders, stakeholder engagement, and reputation—especially inindustrial sectors like food and construction.
Flandin warned that Europe risksself-sabotage by weakening CSRD while China and the U.S. advance their ESGstandards. He advocated for a nested “Russian dolls” approach to reporting: onebase framework (ESRS), with tiered complexity based on company size. He notedthat 50% of French Wave 2 firms were already prepared, and software-drivenprice competition had brought costs down dramatically. He also announced anupcoming pan-European survey to feed into the legislative process.
Charrier defended the need for audits toensure data reliability, but called for support mechanisms for mid-sized firmsto build audit readiness over time. She also insisted on preserving the doublemateriality principle, value chain transparency, and transition planrequirements—all essential for investor decision-making. She flaggedextraterritorial alignment as crucial for international portfolios.
Three corporate testimonies confirmedthat many companies already see CSRD as a business advantage—especially insupply chain management and sustainable design. But they warned that withoutmandatory reporting, ESG de-prioritization is inevitable. Several urged supportvia SME funding incentives, clearer guidelines, and sector-basedsimplifications.
Pascal Canfin and MEPs present echoed theneed to strike a balance: simplification should help companies implement thelaw—not excuse them from it. Canfin floated the idea of a three-tier model(VSME, 250–1000, 1000+ employees) to maintain ambition while tailoring theburden. He acknowledged Germany’s strong pushback and asked stakeholders tohelp unpack the country’s business resistance to CSRD.
Speakers urged mobilization of publicopinion and business voices across Europe to counterbalance deregulatorylobbying. Policymakers stressed that the current political momentum risks beingdominated by rollback narratives, and encouraged civil society and industryleaders to speak up in favor of a resilient, future-proof CSRD.
The event highlighted that CSRD’soperational rollout is already underway and broadly successful amongforward-looking companies. Simplification—especially for SMEs—is welcome, butthe risk of watering down the directive’s scope, speed, and ambition is real.The call from the ground was unambiguous:
“Make it simpler, not weaker.”
The conference closed with consensus onthe following policy recommendations:
● Maintain mandatory engagement forcompanies >250 employees
● Support SMEs with a certified,digital-first, simplified standard (VSME)
● Reform audits to beperformance-focused and affordable
● Ensure double materiality,transition planning, and scope 3 transparency remain core
● Use tiered obligations, notblanket exemptions
● Avoid creating a competitivedisadvantage for Europe’s sustainable firms
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