At all times and in every context, regulatory visibility and stability have been among the key drivers for businesses and investments to foster long-term commitment and stable economic activity. ThisOECDanalysisof 50 yearsprovidesarelevantillustrationofthis.
Yet, despite being promoted to enhance competitiveness—under pressure from various short-sighted lobbies—the European Union’s recent string of backpedalling on sustainable regulations has become a showcase of outcomes that run counter to the original objectives. A few examples include:
The regulation on non-financial rating agencies strongly favours the typically dominant players who have acquired most of Europe’s ESG rating agencies over the past decade.
The enforcement of the anti-deforestation regulation has been postponed by a year, particularly when European countries realized they themselves might fall under its scope. It is also likely to be watered down while failing to address associated social issues.
Of course, none of these regulations were perfect. Several elements did not align smoothly across different parts of the EU Sustainable Finance Plan or the European Green Deal—for example, the mismatch between the Green Taxonomy and the SFDR. Adjustments were undoubtedly needed.
However, among private sector actors, those who made the greatest efforts have ended up unfairly disadvantaged, having dedicated their resources and energy to preparing for compliance whose contours are now, at best, unclear, and at worst, completely uncertain or potentially obsolete.
This raises several important questions:
How credible will legislators remain in this context for future announcements?
At a time when Europe was positioning itself as a leader in responsibility and accountability in a world increasingly destabilized by environmental and social risks, doesn’t this backtracking effectively clear the way for short-sighted and irresponsible approaches—particularly across the Atlantic—and risk handing over part of this leadership to China, which continues to refine its sustainable regulation?
Most importantly: what can be done in the face of such lack of coherence and visibility?
At Ksapa, we believe that now, more than ever, it is essential to focus on a deep understanding of the key ESG issues at the heart of business activities and to work actively to reduce risks and generate positive impact by implementing concrete policies and programs. These will be the foundation for long-term legitimacy for private actors across their entire value chains. You can find case studies illustrating these approaches on ksapa.org (sustainability consulting) and sutti.org (agricultural supply chain transformation).
In our blog this month : In today’s rapidly evolving supply chain landscape, tracking technologies are fundamentally reshaping supply chain visibility. From cloud platforms to AI-powered analytics, these innovations offer unprecedented opportunities for businesses to monitor assets and optimize operations. This article explores ten groundbreaking tracking technologies revolutionizing supply chain management and highlights how Ksapa can help you leverage these advancements strategically.
Financial Inclusion of Agricultural Cooperatives & SMEs in Africa: Market Status
Financial inclusion of agricultural cooperatives & SMEs in Africa is crucial to improve the living conditions of the most vulnerable populations in the continent, but it remains largely underfunded to meet the existing needs and challenges. Société Générale and Ksapa partnered to design and deploy affordable financing schemes for farming communities that foster rural value creation, strengthen agricultural value chains, and generate social and environmental impact through multi-stakeholder coalitions including industry and civil society. Read more here.
VPSHR Lessons from Brazil’s Security Challenges
The Voluntary Principles on Security and Human Rights (VPSHR) has guided company-community relationships for 25 years. At Ksapa, we’ve extensively applied these principles across diverse operational contexts. In this article, we present valuable insights from our recent projects in Brazil.
Digital Inclusion: Lessons from MWC25
Ksapa was honored to participate in the Mobile World Congress 2025 in Barcelona, the world’s premier telecom & IT mobility event. Invited by GSMA Mobile for Development to share expertise on connecting underserved rural communities, the panel session highlighted key crucial approaches for effective digital inclusion targeting small-scale farmers. Read the highlights here.
