France’s ESG retreat could reshape Europe’s sustainability future

France, once a champion of corporate sustainability rules, now risks leading their rollback. Reports suggest the Macron government is considering scrapping key EU ESG regulations—the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CS3D).

The timing is critical. With a US administration hostile to ESG oversight and European industry leaders citing competitiveness concerns, momentum is shifting toward deregulation. French officials insist their stance is being misinterpreted, but leaked documents suggest otherwise.

If CSRD and CS3D are weakened or delayed, companies may no longer be required to report on environmental impact, threatening transparency and accountability. Is this pragmatism or a step back in climate ambition?

Read the full analysis to understand what’s at stake and how businesses should prepare.