Sustainability reporting is not just a regulatory obligation; it is a vital tool for building a more resilient, competitive, and transparent European economy. At a time when European leaders are seeking to boost competitiveness and attract the financing needed to support companies in their sustainability transitions, the EU sustainability reporting framework plays a critical role in leveling the playing field and responding to the call for comparable information by investors, to assess a company’s sustainability performance in order to mobilize private funding to support the Green Deal.

As advocates for transparency and accountability, we at B Lab, alongside over 90 organizations representing civil society, businesses, banks, and investors, have issued a collective call to action. Our message is clear: sustainability reporting is not a burden but an opportunity to drive long-term growth, attract financing, and foster resilience across the European economy.

The Call for Smart Implementation

At a moment when European leaders are seeking to boost competitiveness and attract major financing to support companies’ sustainability transitions, our joint statement emphasizes the critical role of the EU sustainability legal framework as a catalyst for economic transformation. This framework is not a barrier but an enabler of transparency, accountability, and growth.

The statement, shared with EU and national policymakers, highlights:

• The role of the EU sustainability legal framework as a catalyst for economic transformation, driving innovation and supporting companies’ long-term growth.
• The need for legal certainty to protect businesses from short-sighted political reactions that create unnecessary uncertainty and instability.
• The importance of pragmatic implementation to prevent over-compliance approaches that may disproportionately impact smaller businesses.
• The risk-based nature and built-in flexibility of the EU standards, ensuring that companies of all sizes can comply effectively while maintaining high accountability standards.
• The need to protect the EU market and level the playing field globally, ensuring Europe remains competitive while upholding its sustainability commitments.

This statement reflects a collective commitment to ensuring that EU sustainability reporting standards work in practice—not just on paper. By focusing on smart, effective implementation, we can enable businesses to embrace sustainability as a driver of long-term success.

A Vision for Resilience and Growth

For us at B Lab Europe, sustainability reporting is more than a compliance requirement—it is a pathway to a more equitable and resilient economic system. Through our work with Certified B Corporations (B Corps), we’ve seen firsthand how transparency and accountability are not obstacles to growth but enablers of long term success.

Our recent European Study on Financial Performance and Resilience of B Corps provides clear evidence of this. The study shows that B Corps, operating in seven European countries, consistently outperform their peers in workforce and revenue growth. Even during challenging times, such as the COVID-19 pandemic, B Corps demonstrated resilience, with higher rates of operational continuity compared to non B Corps. These findings reinforce the idea that purpose-driven, transparent businesses are well-positioned to thrive in today’s economy.

B Corps across Europe are leading by example. By voluntarily meeting rigorous transparency and reporting standards, they demonstrate how businesses can thrive financially while benefiting people and the planet. This proactive approach strengthens stakeholder relationships and aligns seamlessly with the EU’s vision of sustainable and competitive economies.

Joining Forces for Change

At this critical juncture, we urge European and national policymakers to prioritize smart, easy implementation of sustainability rules over disruptive legal uncertainties. The EU sustainability reporting framework is key to enabling the transition to a regenerative economy, and it is our collective responsibility to ensure it works for all.

As signatories of this statement, we at B Lab Europe reaffirm our commitment to advocating for impactful, actionable sustainability policies. Together with businesses, financial institutions, and civil society, we are driving systemic change that benefits not just Europe but the global economy.

Read the full statement: [Smart implementation of EU sustainability reporting standards: make complying with rules easy]