The publication by the European Commission of its Omnibus proposal revising key corporate sustainability laws sends a clear political signal: workers rights and environmental rights are not a priority for President Ursula von der Leyen.
When President Ursula von der Leyen announced late last year an Omnibus proposal to simplify reporting and sustainability requirements for companies, she committed to upholding in full the spirit and “content of the law,” and stated that the goal of the exercise was to reduce overlapping obligations. However, the proposal published on 26 February is nothing close to what was promised, and if implemented, would go against all of these laws.
The Omnibus proposal would axe many of the Corporate Sustainability Due Diligence Directive’s key provisions and seriously reduces the scope of the Corporate Sustainability Reporting Directive.
If implemented, in practice it would:
- Reduce reporting obligations: only companies with 1.000 employees need to report about the ecological and social challenges they face.
- Weaken Due diligence: Companies would only need to assess direct suppliers, not the full supply chain.
- Remove Civil liability meaning companies would not face legal consequences for failing to meet sustainability obligations.
Read the full statement here