NFU Position Paper on the Sustainability Omnibus Directive
Executive summary
On 29 January, European Commission President Ursula von der Leyen proposed a “Competitiveness Compass” to bolster the EU’s economic standing, highlighting concerns that excessive regulation may be holding Europe back. Just weeks later, on 26 February 2025, the EU released a review of the Corporate Sustainability Due Diligence Directive (CSDDD) and the Corporate Sustainability Reporting Directive (CSRD)—collectively known as the Sustainability Omnibus Package. This review seeks to streamline sustainability regulations central to the European Green Deal.
The Nordic Financial Unions (NFU), representing finance workers across all five Nordic countries, strongly support sustainable finance—where investments align with environmental, social, and governance (ESG) goals. The Omnibus represents both a risk and an opportunity: while simplification could reduce duplication and ease reporting, proposals like the SME shield and a narrower scope may increase bureaucracy for finance professionals and fragment ESG standards.
Simplification is needed, but removing reporting obligations for most companies would amount to short-sighted deregulation. These companies will still face ESG data demands—now without a common framework. This poses risks of creating inconsistent expectations, higher compliance costs, and undermining the coherence of the sustainable finance system.
