TotalEnergies, Siemens urge EU to scrap corporate climate law to boost competitiveness

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🗞️ Driving the news: TotalEnergies and Siemens have led a coalition of 46 major European companies in calling for the repeal of the EU’s Corporate Sustainability Due Diligence Directive (CSDDD), citing concerns over competitiveness
• In a letter addressed to French President Emmanuel Macron and German Chancellor Friedrich Merz, the CEOs argue that the law imposes excessive regulatory burdens and risks undermining European industry’s global standing

🔭 The context: Adopted in 2024, the CSDDD mandates that large companies identify and address human rights and environmental risks throughout their supply chains, with potential penalties of up to 5% of global turnover for non-compliance
• While it forms a central part of the EU’s green and social governance agenda, the directive has faced growing resistance from industry groups and some member states, particularly France and Germany, amid economic headwinds and inflationary pressures

🌍 Why it matters for the planet: Repealing the CSDDD would represent a major rollback of the EU’s corporate accountability framework, potentially weakening efforts to combat environmental harm and labour exploitation in global supply chains
• Critics warn that softening or removing such regulation could embolden corporate inaction on sustainability, especially at a time when robust environmental governance is essential to meet global climate and biodiversity goals

⏭️ What's next: The European Commission and Parliament are currently reviewing implementation guidelines for the directive, with some governments seeking amendments to ease compliance
• The call for full repeal escalates industry pressure ahead of a critical 2026 review
• Discussions may now intensify over compromise proposals, such as narrower sectoral application, adjusted timelines, or simplified reporting frameworks — especially as EU elections approach next year

💬 One quote: “Improving Europe’s ability to compete globally requires less excessive regulation across all sectors” — Siemens AG

📈 One stat: The CSDDD could subject over 13,000 EU and global companies to due diligence obligations on environmental and human rights risks across their supply chains

See on illuminem's Data Hub™ the sustainability performance of TotalEnergies, Siemens, and their peers Engie and Equinor

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