New law causes heated discussions about company sustainability!

New law causes heated discussions about company sustainability!

On July 6, 2025, there was an important meeting, in which around 50 representatives: inside from business, science and politics discussed the effects of the new EU cycle packages. These legislative proposals, which were presented by the EU Commission on February 26, 2025, aim to simplify the regulatory requirements for sustainability reporting and to optimize the duty of care and European investment programs. The measures could enable estimated annual savings of administrative costs of 6.3 billion euros and even mobilize public and private investment capacities of 50 billion euros.

The planned reforms should not only reduce the administrative effort by at least 25% by the end of the term, but also offer small and medium -sized companies (SMEs) with a goal of 35%. However, these changes were accompanied by mixed reactions, since some representatives expressed concerns about credibility and planning security. [Leadersnet] (https://www.leadersnet.at/news/90838,rund-50- representative discussed-Ueber-er.html) emphasizes that less regulation must not lead to less responsibility.

sustainability as an entrepreneurial obligation

A central topic of the discussion was the role of sustainability reporting. Monika Brom from the Federal Environment Agency expressed concern about possible changes to the CSR guideline, which could revoke the reporting obligation for companies and thus represents a risk to sustainability. Josef Baumüller from the WU/TU Vienna also sees the sustainability projects critically because they are often viewed as a negotiating mass. These concerns were shared by many participants who spoke out for sustainability as an entrepreneurial duty that goes beyond legal requirements.

unity prevailed that the value of sustainability reporting remains undisputed. The company representative Sophie Valina from NÖM AG emphasized that climate risks are relevant to business. Alexander Boubal from Simacek GmbH pointed out that the social dimension of sustainability is crucial for the long -term effect. Eva Maria Meißl from the EFS management consultancy called for clearer framework conditions and support for SMEs to improve the sustainability practices.

regulatory changes and challenges

The non-financial reporting obligation in Germany and the EU for large companies that has existed since 2017 is still considered important, in particular after their extensive revision in 2022. The EU directive on the entrepreneurial sustainability reporting (EU) 2022/2464) focuses on uniform reporting standards. This shows that despite the planned relief, numerous reporting obligations remain. [PWC] (https://www.pwc.de/de/Nachhaltigkeit/veraender-berichtsproecht- omnibus-initiative.html) recommends that the next steps are carefully planned and to take into account the upcoming changes in order to assess the effects on the workforce and investors.

In view of the increasing interest of financial market actors in environmental and sustainability information, the proactive approach to prepare is advertised as crucial. Companies should identify important reporting themes and evaluate existing risks, including climate risks and human rights risks. Ultimately, it remains essential for companies to implement “NO-Regret Actions” in order to meet future requirements and to strengthen their market position.