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Corporate Leaders Groups

Business leadership for a climate neutral economy
 

29 January 2025

General reaction

Ursula Woodburn, Director, Corporate Leaders Group Europe  

"The Compass focuses on competitiveness as the core principle, without guidance on how to measure this properly and points to significant deregulation. This will limit the long term vision and clarity that businesses and markets need. Sustainability is not only an imperative in the face of accelerating climate and biodiversity crisis, it’s an essential competitive advantage for EU industries, which already lead in energy and material efficiency. The Compass should be a means to ensure support for people as they navigate new realities and build on the EU’s strengths, enabling leading companies that have already invested in the green and clean transition through clear and effective policy frameworks and driving investment."

Deregulation/finance reaction

Tsvetelina Kuzmanova, EU Sustainable Finance lead, CISL 

“The focus on cutting red tape has put ESG rules in the crossfire and it’s disappointing to see them prioritised as the first casualty. By putting immediate political gains over a clear vision for competitiveness, we risk undermining the very businesses that drive innovation and sustainability. Looking ahead to the EU's omnibus, the EU must ensure it does not throw out much-needed ESG legislation. Cutting ESG rules without a comprehensive plan for both the transition and its financing leaves companies navigating uncertainty, not growth.”  

Business reaction

Fleming Voetmann, Vice President, Sustainability, VELUX Vice-Chair, CLG Europe  

“The Competitiveness Compass tackles critical questions necessary to ensuring a competitive and decarbonised Europe. However, there are some key areas of improvement. As businesses, we need a longer-term horizon on decarbonisation. A cornerstone in increasing energy and resource productivity, and a sector in which we already excel in Europe, is buildings and infrastructure. We currently see little evidence of this in the document.”  

2040 reaction

Romain Pardo, Cambridge Institute for Sustainable Leadership 

“The fact that the Compass has explicitly mentioned the 90% target sends a clear direction of travel and is in line with previous commitments made by the Commission. Businesses are ready to play their part and they need this explicit clarity. Hundreds of leading businesses and investors have called for a net emissions reduction target of at least 90% target for 2040 at the heart of the EU’s comprehensive industrial strategy, guided by a ‘competitive sustainability’ approach. They consider that decarbonisation and competitiveness are not mutually exclusive but two sides of the same coin."