Europe’s sustainability agenda has taken another decisive turn — not through new laws, but through evidence of how much has already changed inside companies.
A new analysis from Susanna Arus, EU Public Affairs Manager at Frank Bold shows how the Corporate Sustainability Reporting Directive (CSRD) is reshaping business practice. Over half of companies now publish transition plans, 73 % set decarbonisation targets, and 40 % have committed to net zero. Perhaps the biggest cultural shift is in the use of double materiality — understanding both how business impacts the world and how external factors impact the business. A year ago, only 15 % disclosed their impacts; this year, 94 % did.
That’s not theory — it’s real progress. Across Europe, large firms are investing in data systems, reporting capability and integrated planning. The tone isn’t resentment about regulation, but recognition that this is now the operating reality. In many boardrooms there’s quiet pride that the effort is turning into clearer strategy and better decisions.
At the same time, the EU Parliament’s narrow vote to reject the “Omnibus I” simplification package shows the political tension between those wanting to ease requirements and those determined to stay ambitious. The vote — 318 to 309, with 34 abstentions — keeps uncertainty around thresholds and timelines, but it hasn’t changed direction. The frameworks may evolve, yet the underlying shift — toward structured, transparent sustainability reporting — is locked in.
From an Australian perspective, what’s happening in Europe matters. The standards being set there are fast becoming global reference points. Investors and supply-chain partners are already working to “European-grade” expectations, and those expectations travel quickly.
Having spent time with teams here, what stands out is not fatigue but momentum. Companies that started early are now moving faster, finding that the same data and governance built for compliance are delivering strategic value — sharper risk management, better investor conversations, stronger resilience.
Europe isn’t waiting for perfect clarity before acting, and that’s perhaps the most useful lesson for others watching from afar: the shift is real, and it’s already well underway.