Changing Hats: Transforming Authority Into Market Opportunities: A Case Study of the Corporate Sustainability Reporting Directive (CSRD) and the Engagement of the Consultancy Industry

Abstract

This thesis explores the significant yet understudied role of consultancy firms in engaging in European sustainability reporting regulation, by investigating the EU’s Corporate Sustainability Reporting Directive (CSRD) as a case study. As the climate crisis intensifies and European regulatory ambitions grow, policymakers are turning more frequently to technical expertise for advice. Consultancies, often perceived as ‘neutral’ experts, have emerged as influential players in policymaking, presenting a crucial area of investigation to understand contemporary governance dynamics. This thesis provides novel insights into the connection between the policy process at a European level and the market opportunities it opens for the consultancy industry. While previous research has examined the participation of consultants in transnational governance spheres, little has been written about the direct relationship with new market opportunities this presents. The central research question guiding this analysis is: “how do consultants assert authority to transform regulation into new market opportunities?” An abductive methodological approach was employed, combining theory-driven process tracing with qualitative data collection. Specifically, 10 semi-structured expert interviews were conducted with key stakeholders involved in the CSRD’s development and implementation. Interviews were supplemented by document analysis, including policy documents, consultancy reports, public consultations, and webinars. Key findings reveal that consultancies have been active participators at every stage of the policy process of the CSRD. By working both with decision-makers and clients, consultants position themselves as intermediaries, leveraging their market experience. Policymakers value their input because of their direct engagement with businesses, while companies rely on consultants for their insights into the complexities of the CSRD, allowing them to ‘wear different hats’. The findings provide important insights into the interplay between public regulation and private interests, and the growing role of consultancies in public policymaking. Future research should further investigate long-term impacts of such public-private dynamics on policy outcomes and explore comparative analyses across different regulatory contexts.