Europe Must Choose Progress Over Bureaucracy
EU institutions should focus more on the goals and development opportunities provided by ESG, rather than on controlling companies’ activities in this area and reporting obligations – says the CEO of Business for Good. It is therefore necessary to relax existing regulations. Europe should also strive to create a common market with unified regulations and mechanisms.
– Europe could treat the Sustainable Development Goals and new growth markets much more as business opportunities rather than obligations. From the perspective of the European authorities, the focus is largely on checking that all activities are performed correctly, that the required reports are being submitted, and that penalties are in place if these obligations are not met – said Marga Hoek, founder and CEO of Business for Good, a think-tank promoting sustainable development practices, in her interview for Newseria news agency. – This approach lacks focus on the growth. When talking about companies outrunning their competition, they need incentives, not control. In other words, Europe focuses too much on the back rooms, while the front door remains closed.
With regard to accelerating the implementation of ESG in small and medium-sized European companies, and thus increasing their competitiveness, the expert points to the need for access to capital for development.
– Entities in Europe need access to capital to a much greater extent compared to the US. In the U.S., it’s much easier to get capital to scale up a company, while in Europe the focus is on large and very small entities, but the space in between, in terms of commercialization and scaling up, is underdeveloped, so more work is needed in this area, – explains the Business for Good representative. – All kinds of regulations and reporting obligations also need to be less restrictive, because we want companies to spend their time on growth rather than compliance with all these rules. I’m not saying that they aren’t important, but there is an 80/20 rule to focus on the most important things.
Marga Hoek also points out that closer cooperation within the European Common Market could help. While Europe is spoken of as a single entity, this statement is often not reflected in reality. Many countries apply different regulations and market mechanisms. There is therefore a need to move away from such practices.
There are many indications that representatives of the European Commission are listening to the voices of experts. According to the proposed and planned deregulation packages, they are aiming to achieve at least a 25% reduction in administrative burdens, reaching up to 35% for SME companies, by the end of the current term. In February this year, the EC adopted its first ESG simplification package, which includes sustainability reporting. The initiative aims to reduce administrative burdens by focusing obligations on the largest entities with the greatest climate and environmental impact. The Omnibus package includes deferral of obligations in the Corporate Sustainability Reporting Directives (CSRD) and Corporate Sustainability Due Diligence Directives (CSDD), and simplification of reporting standards for SMEs. Obligations under the CSRD will only be carried out by large companies with more than 1,000 employees and meeting certain financial thresholds (turnover of more than €50 million or having a balance sheet total of more than €25 million). The EC estimates that the solutions will reduce the number of reporting companies by about 80 percent, and also estimates that the changes could save €6.3 billion annually and trigger €50 billion in additional investment.
The expert mentions best practices that could be implemented in Poland to really boost the development of sustainable business.
– There are many such factors – one of them is technology: AI, big data, blockchain, machine learning. All of these technologies can accelerate ESG goals by lowering costs and gaining access to new markets, which greatly accelerates development and also creates many business opportunities. This is one issue worth considering in the context of Poland, – Marga Hoek said. – The other is cooperation between business, universities and the government sector. This aspect can be greatly improved in Poland, so that companies can develop and transfer knowledge from academia to business and use, for example, public procurement to support these markets.
Poland is moving more and more towards sustainable development. On May 27-28, Sustainable Economy Summit was held in Warsaw – an event attracting entrepreneurs and managers of companies implementing sustainable business practices, ESG and CSR experts, as well as representatives of public administration and NGOs. During the meeting, key aspects of ESG were discussed, including such issues as proper supply chain management, reduction of CO2 emissions or energy transition. Among other topics, the focus was on how Europe can combine regulation with global growth, or remain competitive with the US and Asia while pursuing sustainability goals.
In the opening panel titled “A Sustainable and Strong Europe”, alongside Ms. Marga Hoek, Founder and CEO of Business for Good, the following speakers participated: Dr. Paweł Bukowski, Assistant Professor of Economics at University College London and the Polish Academy of Sciences; Prof. Waldemar Kamrat, Director of the Nuclear Energy Center at Gdańsk University of Technology; Marek Jedziniak, Head of R&D at Biogas System; Piotr Maciak, President of the Management Board at Nordkalk, Managing Director at Nordkalk Wapno, and Vice President of the Nordkalk Group responsible for the Eastern Europe Region; and Jacek Niewęgłowski, CEO North East Europe at Smurfit Westrock. The discussion was moderated by Ms. Małgorzata Pek, Partner, Financial Audit Department, Forvis Mazars Polska.
The panelists agreed that the implementation of ESG goals could become the foundation of Europe’s competitive advantage – provided it is wisely designed and supported by effective, flexible public policies. They emphasized that the European development model – based on stable democracies, relatively low social inequalities, and strong technological competencies – has the potential to make the continent a leader in the global transformation. However, a key challenge remains the insufficient level of investment in research and development, as well as the lack of equal opportunities, which deprives the economy of many talented individuals.
You can watch the full panel recording here: LINK
Last Updated on June 17, 2025 by Anastazja Lach