Jean-Laurent Bonnafé, CEO of BNP Paribas, has expressed his skepticism about the European directive on sustainability reporting, known as the CSRD (Corporate Sustainability Reporting Directive). Speaking at a conference organized by the French Association of Corporate Treasurers (AFTE), he denounced what he considers an administrative overload imposed on European companies.
The CSRD, which will take effect in 2025 for large corporations, will gradually extend its requirements to medium-sized companies in 2026 and to publicly traded SMEs in 2027. It mandates that companies publish detailed information about their environmental, social, and governance (ESG) impacts while assessing how these issues influence their economic activities, under the “double materiality” principle.
An Administrative Burden Criticized
For Mr. Bonnafé, this directive reflects an overly rigid approach to European regulation, which he called a “bureaucratic delusion.” He believes these new obligations could lead to legal misunderstandings, increasing litigation risks for companies. According to him, these mechanisms do not provide a concrete response to industrial and technological challenges.
“It’s simply about learning; we need to accept learning,” he emphasized, while suggesting that Europe should rethink its approach to avoid burdening companies with excessive requirements.
A Lag Behind China
Mr. Bonnafé also highlighted Europe’s lag behind China in several strategic areas, such as batteries, solar panels, and wind energy. He noted that China has adopted a more “programmatic” and rapid approach in these sectors, leaving Europe trailing behind.
In his view, Europe should focus on practical and industrial solutions rather than multiplying rules. He criticized the tendency of European institutions to “enlighten the world” without ensuring the industrial feasibility of the adopted texts.
A Directive with Implications for Energy Policy
The CSRD introduces requirements similar to those of financial reports but with a strong emphasis on sustainability. Companies will have to detail their impacts and have this data audited. However, Mr. Bonnafé fears that this increased complexity could discourage companies and hinder their competitiveness.
This situation also raises questions for European energy policy. While the European Union’s climate ambitions rely on accelerated development of renewable energy, such regulations could slow down necessary investments in key sectors.
Experts see the CSRD directive as an important step toward harmonizing sustainability standards, but its implementation requires balance to avoid undermining energy transition goals.
