CSRD and sustainability: The emergence of a green core in Europe?

The European Union, in order to gain agility, regularly evokes the need to operate through differentiated integration to deal with strategic issues which have very little probability of achieving unanimity among its member countries.

At a time when ESG (Environment, Social, Governance) regulations are facing increasing criticism, some Member States remain committed to advancing sustainable development. This divide could soon create a new axis: that of countries choosing to accelerate the societal and environmental transition, versus those holding it back.

CSRD: A differentiated but real commitment

Faced with the general backlash against excessive ESG regulation in Europe, as evidenced by the current omnibus law, some countries seem determined to pursue the sustainable development agenda.

These are primarily the Scandinavian countries (unsurprisingly…) but also Spain and even Italy. Some large companies from these countries have recently published “high-quality” CSRD reports, cites this Novethic article.

What if Europe created a “green circle”?

So why not imagine creating a European “green circle,” made up of the countries most committed to the societal and environmental transition, to play the role of “locomotive” that EU governance now seems reluctant to assume? This would allow for continued accumulation of CSR experience and maturity, which other member countries could later capitalize on.

This variable geometry dynamic would allow:

​ To gain experience and maturity in extra-financial performance.

​ To inspire other Member States when the results speak for themselves.

​ To demonstrate that sustainable investment can go hand in hand with performance and economic valuation.

A strong signal for other European economies

If “green circle” companies prove to be more resilient, innovative, and valued, it’s a safe bet that more reluctant economies like France or Germany will reconsider their position on the European Green Deal.

It may therefore be in this multi-speed Europe that lies the key to continuing to move toward a sustainable and responsible economy, without holding back the most willing.