Politics-Driven Sustainability Reporting - How Best Ideas May Fail
Politics-Driven Sustainability Reporting - How Best Ideas May Fail

Author(s): Atanas Atanasov
Subject(s): Economy, National Economy, Business Economy / Management, Public Finances, Accounting - Business Administration
Published by: Икономически университет - Варна
Keywords: sustainability reporting; ESG reporting; political decisions; political influence; CSRD; ESRS
Summary/Abstract: Background and aim: The paper explores the growing politicization of sustainability reporting within the European Union, focusing on how political interventions have shaped — and in some cases, undermined — the implementation of the Corporate Sustainability Reporting Directive (CSRD). The study aims to critically assess the recent “Omnibus” legislative package and its implications for corporate transparency and the EU’s sustainability agenda. Scope: The analysis is limited to the CSRD regulatory framework, excluding detailed examination of ESRS and CSDDD amendments. Methods: A qualitative policy and document analysis was conducted using EU legislative texts, Commission communications, and professional reports to identify trends and contradictions in sustainability reporting regulation. Results: Findings reveal that political simplification efforts have significantly reduced the scope of obligated entities—by up to 80%—creating uncertainty, inconsistency, and weakened comparability of sustainability disclosures across the EU. Conclusions: Political compromise has diluted the transformative intent of the CSRD and delayed progress toward EU Green Deal objectives. Originality: By linking policy analysis with regulatory outcomes, the paper contributes to understanding the fragility of politically driven sustainability reforms. Practical implications: The findings underscore the need for long-term policy consistency and evidence-based regulation to ensure reliable sustainability reporting.

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