France is urging the European Union to hit pause on tough new regulations aimed at tackling environmental and human rights issues in global business operations.

The French government argues that these rules, while well-intentioned, are becoming an unnecessary burden on companies already grappling with economic pressures.

Benjamin Haddad, France’s European Affairs Minister, shared his concerns on social media, saying, “Our businesses need simpler processes, not more red tape.” His remarks are directed at the Corporate Sustainability Due Diligence Directive (CSDDD), a policy requiring companies to monitor and address the impact of their supply chains. Haddad is calling for this rule—and others like it—to be reconsidered.

European businesses face challenges with new sustainability rules

It’s not just France speaking out. Business leaders across Europe have expressed frustration with the growing list of requirements. Another regulation under fire is the Corporate Sustainability Reporting Directive (CSRD), which demands companies report on their environmental impact. Many say the administrative workload is overwhelming.

France’s government has even labelled the CSRD as ‘a headache for companies,’ highlighting concerns that these policies could make EU businesses less competitive on the global stage. Firms are expected to start complying with the reporting rules in 2024, leaving many worried about how to meet the demands without falling behind.

Lobby groups, including BusinessEurope, are pressing the EU to scale back. They warn that European businesses are being held to higher standards than their international competitors, which could harm their ability to compete.

Environmental groups push back against delay in EU climate rules

Environmental organisations aren’t happy with France’s stance. Groups like Oxfam France argue that these regulations are crucial for creating a fairer and more sustainable world. They warn that delaying or weakening these rules could jeopardise progress on climate goals.

“These policies aren’t just red tape—they’re a step towards real accountability,” said a spokesperson for a coalition of environmental groups. “Watering them down now would be a mistake.”

The EU faces a tough balancing act. As it works to support businesses and remain globally competitive, it must also stay committed to its ambitious climate targets. Whether these rules will be adjusted remains to be seen, but the debate highlights the challenges of finding common ground in a rapidly changing world.

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