Greece faces uphill path, as EU’s ESG pause tests corporate commitment

Illustration by Filippos Avramidis

The European Union’s determination to hold implementation of its flagship sustainability directive has stirred statement implicit the bloc’s biology ambitions – and raised tough questions for Greece’s concern landscape, where the ascendant diagnostic is simply a prevalence of small and mid-sized businesses.

In April 2025, the European Commission moved to postpone parts of the Corporate Sustainability Reporting Directive (CSRD) done the so-called “Stop-the-Clock Directive.” The determination pushes backmost by two years the reporting deadlines for definite ample companies and listed small and medium-sized enterprises (SMEs), citing the request to easiness regulatory burdens and let much clip for adjustment. Publicly listed ample corporations and non-EU companies operating successful Europe stay unaffected.

While Brussels insists the determination is not a retreat from its greenish transition goals, the timing – amid shifting planetary dynamics and a US argumentation pivot toward expanded lipid accumulation – has fueled speculation that Europe is tempering its biology rigor to support competitiveness. EU officials support that the 2030 decarbonization targets stay unchanged and item caller support tools, including the Clean Industrial Deal, to accelerate sustainable investment.

Still, the question looms: will European and Greek businesses use this breathing space to physique resilience, oregon will they footwear the tin down the road?

For Greece, the situation is peculiarly acute. SMEs marque up much than 95% of the country’s firm fabric, and astir deficiency the resources and expertise to conscionable ESG (environmental, social, and governance) requirements. According to a caller National Bank of Greece study, implicit two-thirds of Greek SMEs explicit involvement successful sustainability initiatives, yet lone 22% are adequately informed, and less than 5% person begun meaningful implementation.

The vast bulk absorption connected biology actions – recycling oregon energy-saving measures – while acold less prosecute κοινωνικά oregon governance goals. Only 3% of Greek firms study a broad ESG (Environmental, Social, Governance) strategy, underscoring the spread betwixt aspiration and execution.

Findings from an ICAP-CRIF yearly survey of Greece’s 3,000 largest companies overgarment a akin picture: contempt recognizing the value of sustainable growth, astir fractional people nary accusation connected their ESG practices. High costs, bureaucratic complexity, and constricted know-how stay large obstacles.

Analysts warn that without substantial training, integer tools and incentives, Greek companies hazard falling down erstwhile the EU’s reporting timepiece resumes. For now, Europe’s ESG intermission offers a important window – 1 that could either catalyze meaningful transformation oregon exposure conscionable however unprepared galore businesses remain.