Bruxelles has launched a series of measures based on a very radical and bureaucratic vision in terms of sustainability. Against them, dissent and disapproval has been raised from various directions, even influenced by the opposing view of the new U.S presidency. Now, the tendency is to try to reach a greater simplification. Let’s take stock of the European Union green challenges
di Massimiliano Viti
Much more severity results in an increase in bureaucracy for companies. The key is to decrease or not the restrictions? While the US, guided by Trump, has deliberately chosen the first option, Europe is trying to reach a balance between sustainability and competitiveness. Also taking into account that its green choices and challenges need to obtain a right-ward oriented political consensus. The result? The laws in order to make – at least on paper and within a general effort – fashion much more sustainable are extended and made less impactful for companies.
Someone needs to reduce bureaucracy
In France, for example,the famous Anti-Fast Fashion Law, unanimously approved by the National Assembly on 14th March 2024, hasn’t still been applied. This has given room to a suspicion: Shein, that has reportedly been damaged by the taking effect of the law, could have strategically introduced an effective lobbying activity. Not only. Right from Paris, Bernard Arnault, CEO of LVMH, has shouted: “France should be inspired by the US and nominate someone in order to reduce bureaucracy”.
The European Union green challenges
From Paris we shift our attention to Bruxelles, where the European Union is simplifying the norms on sustainability. On Feb. 26 2025, the President of the European Commission Ursula Von der Leyen II, together with the Clean Industrial Deal, presented the Omnibus Simplification Package, a program based on the simplification of various precise duties. One of the main objectives is to come to terms with the Small and Medium Firms, especially when they are an important part of the supply chain of the biggest fashion and luxury brands. This reference is related, in particular, to two directives. The first one is represented by CSRD – Corporate Sustainability Reporting Directive, adopted in 2023, it essentially imposes companies to report information about their environmental footprint and to present a program aimed at contrasting it.
The second one is the CSDD – Corporate Sustainability Due Diligence Directive. Adopted in 2024, is aimed at the protection of human rights. Then, it leads companies to gain more awareness about the environmental damages and establishes the legal responsibility of firms on the provisions of their value chain. These measures have been welcomed by environmentalists, but have been criticized by the business world due to the excessive required bureaucracy. This elections for the new European Parliament have effectively changed the scenario. The green parties lost seats, giving advantage to the centre-right, whose attention is much more focused on economical issues, rather than the environmental ones. The moral: it has been launched a process of revision of the norms that constitute the Green Deal.
The Omnibus Simplification Package
The Omnibus Simplification Package is composed of two directives. First: It delays the implementation of the CSRD and of the CSDDD to 2028, relating it to the fiscal year 2027. Second: it decreases in a significant way the number of companies forced to present the sustainability report as established by the CSRB, by essentially limiting it to the big firms (with at least 1000 employees and with a revenue of more than 50 million euros, or assets of more than 25 million euros).
In addition: the norms aimed at the protection of human rights and the environment won’t be related to the supply chain, but just to the direct contractor. In this way, 80% of the previously involved companies remain excluded. Also: the CSDDD requires one assessment every five years, instead of the previous yearly ones. Then: the obligation to cut off the relationship with non-compliant partners/suppliers is extinguished. Finally: it provides the companies to request data from suppliers, only if necessary.
Institutional procedure
The Omnibus Simplification Package is currently awaiting approval by the European Parliament and by the Council of the European Union. Then, it will be further discussed by the three European institutions (Commission, Parliament, Council) with the aim of ultimately reaching an agreement. It will take time, because the institutional procedure is not swift. But it seems evident that Bruxelles is trying to simplify the previously extreme green challenges, in order to permit the economic growth of companies The question remains as to whether, at the end of this process (if it ever comes to an end), if it will be convenient to fashion firms to “save” on sustainability. Or if it wouldn’t have been better to shift the focus of these challenges towards a more cultural level, that it wouldn’t have surely been this related to bureaucracy.
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