'Reckless deregulation' which could see unscrupulous employers go scot free, EU’s corporate sustainability rollback condemned
Mary Robinson, the former UN High Commissioner for Human Rights, and the Business & Human Rights Resource Centre are voicing their deep concern at the European Commission’s weakening of the Corporate Sustainability Due Diligence Directive (CSDDD), Corporate Sustainability Reporting Directive (CSRD), and the Taxonomy Regulation.
Responding to the announcement of the Omnibus packages on sustainability and investment simplification, Mary Robinson and the Resource Centre called on all EU lawmakers, member states and responsible businesses to resist the reforms during the negotiation and adoption process.
Mary Robinson said: ‘Von der Leyen’s new Commission’s attempt to eviscerate these sustainability laws must not be agreed by the European Parliament and by the member states.’
Phil Bloomer, executive director of the Business & Human Rights Resource Centre said: 'The EU’s sustainable finance framework has been a beacon of long-term competitiveness and responsible governance. Yet, at a time when climate and inequality crises demand bold leadership, instead of strengthening these vital protections, the Commission is bowing to irresponsible business lobbies and rolling back progress under the guise of simplification. The proposed weakening of the Corporate Sustainability Due Diligence Directive (CSDDD) and other sustainability laws is not just a bureaucratic adjustment – it is reckless deregulation which undermines trust, legal certainty, and Europe’s global leadership. Particularly concerning is the dilution of corporate due diligence rules which will mean unscrupulous employers within supply chains may go undetected or accepted by brands, with neither being held to account. More than 100 responsible investors and 6,000 businesses have urged the Commission to hold its nerve, maintain legal clarity, and support smart regulation that fosters innovation rather than caving to short-term populist pressures. Europe must not follow the US down the path of deregulation and lost credibility. If we abandon these hard-won standards now, we will erode public trust, destabilise responsible businesses, and weaken the EU’s ability to shape fair and sustainable global markets.'
Notes to editors
The announced Omnibus changes announced will:
- Severely reduce corporate responsibility for monitoring and addressing human rights and environmental abuses under the CSDDD and delay its application.
- Remove obligations for companies to terminate harmful business relationships.
- Water down financial penalties and remove civil liability provisions.
- Delay and weaken reporting requirements under the CSRD and dramatically reduce the number of companies covered.
Why the Omnibus announcement is a backwards step for responsible business and sustainability
Business leaders, responsible investors, and civil society organizations have repeatedly warned against weakening these rules. More than 150 business and human rights professionals and a coalition of companies—including Unilever, Nestlé, and Mars—have urged the EU to uphold the legislation, emphasising its importance for long-term resilience and competitive advantage.
Why EU lawmakers, member states and responsible businesses must oppose the Omnibus changes
The EU has long been a global leader in sustainable business practices, setting standards that influence companies worldwide. Weakening the CSDDD, CSRD and Taxonomy will not only harm workers, communities, and the environment but also creates uncertainty for businesses that have already begun implementing compliance measures.
For more information or to arrange an interview or briefing, please contact Anil Dawar: dawar@business-humanrights.org | +44 7766 317 434