EU: Sustainability initiatives with over 6,000 members urge policymakers to ensure core elements of EU's sustainability framework remain
"Leading sustainability initiatives urge EU policymakers to consider adapting the Omnibus proposal for better risk management and worker and environmental protection", 17. März 2025
...Seven sustainability initiatives... bringing together over 6,000 member companies and affiliates with extensive experience in responsible supply chain practices – call on EU policymakers to ensure that the core elements of the EU sustainability due diligence and reporting framework remain aligned with internationally recognized standards, namely the UNGPs and OECD Guidelines, in light of the recently published Omnibus proposal to amend key regulations.
The organizations welcome the European Commission’s efforts to simplify due diligence requirements and ease the burden on European businesses. However, this simplification should not come at the cost of weakening due diligence. They stress that the current proposal does just that – while also creating unintended consequences for risk management, increasing unpredictability and complexity, and ultimately adding to corporate burden and costs.
Key recommendations to EU policymakers:
- CSDDD: Proportionate and risk-based approach must be preserved
The current Omnibus proposal weakens due diligence obligations by restricting them to direct suppliers (unless a company has plausible information about indirect partners)... - CSDDD: Harmonized enforcement for more legal certainty
Having EU-wide mandatory due diligence legislation should bring increased clarity of expectations and, overall, greater legal certainty for businesses... - CSRD: Invested businesses need certainty
Narrowing the scope of the CSRD will exclude 80% of companies currently subject to it, undermining the efforts of those companies that have been preparing for reporting under the CSRD – now confronted with legal uncertainties and internal struggles. In addition, the Omnibus proposal aims to limit the “trickle-down effects” on non-reporting companies. By doing so, it risks disrupting alignment with other EU regulations, which require companies to engage with suppliers and collect value chain data.
Ultimately, the organizations believe that simplifying due diligence and reporting requirements can be achieved without moving away from the spirit of international standards...