“Ripples from EU omnibus threaten to disrupt global sustainability standards”

After months of opaque process and political uncertainty, the European Commission finally brought forward its proposal to amend key EU sustainability laws through the so-called omnibus directive…

…already there have been cries of de-regulation from those who have worked for more than five years to bring these rules into force and who are baulking at seemingly knee-jerk changes to the previously agreed text.

While the political messaging has been that these changes are intended to boost EU competitiveness, there is a more fundamental question that needs to be examined, namely: what is the potential of these changes, if they are ultimately agreed, on the development and advancement of global norms on conducting business in a responsible and sustainable manner?...

The EU is a major driver of global economic activity and whatever it does creates ripples that travel throughout global supply chains. Both the EU’s corporate sustainability due diligence directive (CSDDD) and corporate sustainability reporting directive (CSRD) were intended to accelerate sustainability business activity.

However, rolling back on an agreed approach risks the EU ripple effect disrupting the global landscape instead of providing a pathway towards greater convergence.