Politics, the EU Omnibus, and Our Approach to Long-Term Risk

In the turbulent world of European Union politics, sustainability regulation has become a battlefield. Politicians from every side of the political spectrum are either digging in to protect the EU Green Deal or sharpening their knives to cut it into fragments.

Professor Andreas Rasche’s research on corporate sustainability with a focus on ESG, governance, and sustainable finance gives him an excellent foundation to cut through the chaos. A professor and associate dean at the Copenhagen Business School, with seven books and over 60 peer-reviewed articles in international journals, his current work focuses on Green Deal regulations such as the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD).

While the European Commission is set to unveil its omnibus proposal on 26 February 2025, the ingredients for the revision have been simmering for a while.

“The first discussions around simplifying sustainability regulations date back to before the European elections in 2024,” said Rasche. “Then we saw the Draghi report, which outlined the need for increased competitiveness and the need to cut red tape. Then another milestone was the so-called Budapest Declaration, which calls for a 25% reduction of the reporting burden for corporations. The commission has agreed to that, so now they’re under pressure.”