Greenwashing, Reporting, and the Future of Sustainability in the EU

Strategic planning has become a difficult undertaking for businesses in the last few years. From geopolitical upheaval to regulatory uncertainty, understanding where to focus has become a precarious juggling act for business leadership.

Jon McGowan is a Florida-based attorney at the intersection of business and sustainability. He advises businesses, boards, attorneys, professional organizations, and governments on the impacts of international legal developments in ESG, sustainability, and climate change regulations. He spoke with 3E in early January to provide his thoughts on the year ahead in ESG, what to watch for, and where some significant risks might be hiding.

All Eyes on the Omnibus in the EU

26 February 2025 is the date on which the European Union (EU) is scheduled to provide some clarity on what the future of sustainability reporting and the EU Green Deal will look like. As McGowan pointed out, Germany has been a central actor in the omnibus drama.

“Germany seems to be leading the charge to try and roll back the requirements with the CSRD (Corporate Sustainability Reporting Directive) and the CSDDD (Corporate Sustainability Due Diligence Directive),” said McGowan. “I think there’s definitely a strong push from business sectors and more conservative governments to reduce those reporting requirements and reduce the scope of CSDDD, so I think climate activists are really concerned that’s what the end goal is.”

McGowan sees the current debate about the omnibus as the latest development in an atmosphere of ongoing political intrigue regarding regulations and sustainability.