EU sustainability regulation: industry perspective

The European Union has been a forerunner in implementing sustainability policies and regulation in line with UN-led global sustainabilty treaties, such as the Paris Agreement. Becoming carbon neutral by 2050, and reducing greenhouse gas emissions -55% by 2030 are legally binding targets in EU environmental law. They offer a solid strategical foundation on top of which companies can plan their sustainability activities. The existing objectives in environmental law are clear. However, same cannot be said of the legislative work of EU. In February 2025, the EU commission communicated a new proposal aiming to drastically simplify already accepted sustainability legislation. The fluctuating decision-making and the complicated legislation landscape can make it difficult for companies, especially SMEs with limited resources, to commit to sustainability actions and develop the required expertise. This public document collects information, meaningful resources, and a timeline of major EU sustainability legislation (as of 2025 May) in one place. It also discusses the company actions and strategical implications reaching these targets would mean in the near and mid-term future. The document has been prepared as part of a Business Finland co-research project 'Data-driven design for sustainability' (6292/31/2023) led by Aalto University. Improvement ideas, comments, or any factual errors can be reported to the corresponding author via email.