CLEPA supports the EU’s objectives on climate action, circular economy, responsible supply chains, human rights protection, and a just transition. A well-designed European ESG (Environmental, Social, and Governance) regulatory framework should empower companies to drive meaningful progress toward these goals.
However, the current approach places excessive focus on reporting requirements and legal liability, resulting in administrative burdens and legal uncertainty that stifle innovation and competitiveness. In contrast, other global regions encourage innovation through targeted incentives such as tax benefits and voluntary compliance frameworks.
To maximise impact, the ESG framework should provide companies with greater flexibility to prioritise sustainability efforts where they can drive the most significant change—particularly through sustainable innovation. Automotive suppliers already invest €30 billion annually in research and development to reduce emissions, improve circularity, enhance consumer experience, and ensure safety. Simplifying regulations would unlock further innovation, strengthening Europe’s ability to compete globally.
