The European spirits sector stands firmly behind the objectives of the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CS3D). These frameworks hold significant potential in fostering a more sustainable and resilient industry, reinforcing our commitment to responsible business practices.
On 26 February 2025, the European Commission took a welcome step in the right direction with the publication of the Omnibus Simplification Package. This initiative presents an important opportunity to recalibrate the CSRD and CS3D frameworks, ensuring they effectively drive sustainability while remaining proportionate and manageable for businesses of all sizes.
As we move forward, we urge the European Parliament and the European Council to ensure that the revised texts provide clarity and coherence in reporting obligations. Simplified, streamlined processes are crucial to reducing unnecessary administrative burdens, allowing companies to focus their resources on meaningful sustainability actions rather than excessive bureaucracy.
One critical step in this direction is the fast-tracked adoption of extended transition periods for both the CSRD and CS3D. Legal certainty and predictability will encourage companies to make both short- and long-term investments in sustainability measures, reinforcing the sector’s commitment to responsible growth.
Another positive development in the Omnibus Simplification Package is the extension of provisions subject to maximum harmonisation. By preventing fragmentation through divergent national rules—a phenomenon known as ‘gold-plating’—the package ensures a level playing field for businesses across the European Union. A harmonised regulatory environment strengthens the Single Market and facilitates smoother compliance processes.
However, challenges remain. Even well-intended EU-level policies can be undermined by national-level implementation. A clear example is the recent update to suppliers’ contracts by the Swedish monopoly, Systembolaget. By introducing mandatory carbon data reporting requirements for some suppliers, this move appears contradictory to broader EU efforts to cut red tape. Every additional reporting requirement ultimately adds to administrative burdens, highlighting the need for consistent policy application across all levels.
Looking ahead, we anticipate further progress with the next simplification package, particularly one that focuses on the food and drink sector. The European spirits industry remains committed to constructive dialogue and collaboration to ensure that sustainability goals are met in a practical, effective, and business-friendly manner.
Together, we can create a regulatory environment that fosters sustainability while supporting economic growth and innovation.
