Hot take: The EU's roll back of ESG reporting

Hot take: the EU's roll back of ESG reporting requirements is a good thing. 

Without a doubt, the single biggest headache I hear from sustainability professionals involves the complex landscape of modern reporting. As bureaucrats in Brussels continue to pen new frameworks and requirements, there is little thought spared for the people actually having to do the work. 

I don’t mean to imply governance and transparency are unimportant. Quite the opposite (especially given this is where I spend most of my working life). Where we’ve gotten, however, is almost nightmarish. There are now over 600 different types of reporting frameworks around the world, with an endless number of potential combinations. 

We’ve become embroiled in what many would consider a growing amount of busy work. 

• CSOs seem to agree, with 90% stating they are spending more time on compliance than just two years ago. 

• A full 75% say regulatory requirements are the most prominent aspect of sustainability at their organisations. 

• Only 50% of CSOs today feel they spend most of their time on high-impact work, with reporting not making that cut. 

A representative from a major multinational company once told me something that really gave me pause. They said for every one person they hire to do sustainability programming, they hire seven to work on governance and reporting. This is the exact opposite scenario to where we should be. In essence, we’re no longer doing the practical work. We’re spending our time, budget, and resources ticking bureaucratic boxes as glorified accountants. 

I hope the EU's roll back gives us the time to reinvest in more high-impact endeavours. 

What's your take?

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