NFU Press Release: Disappointing European Parliament Vote Weakens EU Sustainability Framework

Carin Hallerström, NFU’s General Secretary, expressed deep disappointment over yesterday’s vote in the European Parliament on the Omnibus I package, which amends the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD).

Instead of reinforcing Europe’s commitment to transparent, responsible and future-proof financial markets, the European Parliament has adopted a mandate that drastically narrows the scope of sustainability reporting and due diligence obligations. By raising thresholds far beyond the JURI Committee’s compromise and eliminating key requirements such as climate transition plans, the adopted text undermines two essential pillars of the EU’s sustainable finance framework.

“This vote sends the wrong signal at a moment when financial institutions, investors and regulators require more, not less, credible information about companies’ environmental and social risks. CSRD data is indispensable for risk assessment, portfolio steering, capital allocation, and the long-term resilience of Europe’s financial system”, according to Carin Hallerström.

Weakening this framework reduces transparency, increases uncertainty, and threatens the competitiveness of European companies that have already invested heavily in high-quality reporting.

“We are equally concerned by the political dynamics that produced today’s outcome. The decision to rely on a far-right coalition to push through amendments that dismantle key parts of the CSRD and CSDDD risks eroding trust in the EU’s rule-based approach to sustainability and responsible business conduct. Europe cannot afford a fragmented or weakened framework at a time of accelerating climate and geopolitical risks”, added NFU’s Head of EU Affairs Anna-Delia Papenberg.

NFU calls on the Council and the Danish Presidency to defend the integrity of the CSRD and CSDDD in the upcoming trilogue negotiations and to ensure that Europe maintains a strong, coherent and future-oriented sustainability regime. Nordic financial workers and institutions have long championed responsible business practices and transparent markets. We urge EU co-legislators to uphold these values and safeguard the tools that enable investors, supervisors and workers to plan for a sustainable and stable future.