Investors Managing €6.6 Trillion Urge EU to Maintain Sustainability Disclosure Rules

Investors overseeing a combined €6.6 trillion in assets are calling on the European Commission to preserve the integrity of the EU’s sustainable finance framework, warning that broad regulatory changes could threaten Europe’s economic competitiveness. Concerns are focused on the upcoming Omnibus package, set for introduction on February 26, which could lead to significant revisions in key sustainability regulations.

In a joint statement, 200 financial sector actors, including asset owners and managers, emphasized, “Reopening these regulations in their entirety risks creating regulatory uncertainty and could ultimately jeopardize the Commission’s goal to reorient capital in support of the European Green Deal.”

The Omnibus package aims to streamline regulations, revising laws such as the EU Taxonomy, the Corporate Sustainability Reporting Directive (CSRD), and the Corporate Sustainability Due Diligence Directive (CSDDD). However, investors argue that these regulations are “fundamental cornerstones of the EU’s sustainability policy architecture,” essential for fostering long-term growth.

Aleksandra Palinska, Executive Director at Eurosif, cautioned, “Sweeping changes to these rules, before they are fully implemented, will create regulatory uncertainty and are likely to hinder the contribution investors can make to sustainable growth.” Investors stress that clear and stable regulations are crucial for informed decision-making, enabling them to manage risks, identify opportunities, and redirect capital towards a competitive, equitable, and prosperous net-zero economy.

While supportive of regulatory improvements, investors argue that changes should focus on refining technical standards rather than overhauling sustainability rules. Nathan Fabian, Chief Sustainable Systems Officer at PRI, emphasized, “Wholesale changes to key sustainable finance tools and frameworks during their implementation create uncertainty in the market and risk undermining the ability of economic actors to communicate clearly, setting back economic transition.”

Proposed refinements include streamlining technical standards based on industry feedback, providing sector-specific implementation guidance, ensuring alignment between EU and international reporting standards, and leveraging digital solutions to ease reporting burdens and improve data accuracy.

The statement highlights that existing transparency rules are delivering results, with European companies reporting €440 billion in Taxonomy-aligned capital expenditure by 2024—a figure expected to grow. Alexander Burr, ESG Policy Lead at Legal and General Investment Management, noted, “An efficient way to bring coherence and interoperability to the framework would be through the technical standards. Providing clarity through the technical standards would maintain the Commission’s leadership.”

With the EU facing an annual investment gap of €750-800 billion, investors caution that weakening sustainability disclosures could undermine initiatives like the Clean Industrial Deal, aimed at enhancing Europe’s net-zero industry competitiveness.

Héléna Charier, Head of SRI Solutions at La Banque Postale Asset Management, reinforced the need for regulatory stability: “Corporate sustainability disclosure rules are essential to enabling investors to efficiently allocate capital towards the most sustainable companies and projects, financing the EU’s energy transition while also identifying and managing sustainability risks.”

The investor-backed statement has been shared with Commission President Ursula von der Leyen and key EU policymakers, urging them to maintain a robust and predictable regulatory framework for sustainable finance.