'Danish Institute for Human Rights calls for strong implementation of EU sustainability rules after Omnibus I'

With the EU’s adoption of the revised Corporate Sustainability Due Diligence Directive (CSDDD) and Corporate Sustainability Reporting Directive (CSRD) under Omnibus I, the Danish Institute for Human Rights urges policymakers and businesses to ensure the effective implementation of these instruments which is capable of driving responsible business practices and better outcomes for people and the environment. Such efforts need to align with the expectations of the core international standards for responsible business conduct and respect for human rights by business.

The Institute welcomes the retention of a risk-based approach in the CSDDD but warns that new restrictions could undermine companies’ ability to identify and address human rights and environmental impacts across global value chains. 

"The main risks often occur far upstream and downstream," the Institute notes, calling for pragmatic implementation that prioritises the most severe impacts regardless of tier and allows for engagement between a company and its business partners.

Other concerns include weakened stakeholder engagement provisions, the removal of mandatory climate transition plans and the civil liability provision, as well as significant reductions in the scope of companies covered. The Institute stresses that effective implementation will require clear guidance, robust supervision and enforcement, and continued engagement with business partners and civil society.

While Omnibus I focuses on reducing burdens for companies, the core focus of the CSDDD and CSRD has always been to ensure that businesses contribute to sustainable development and better outcomes for people and the environment. All too often this has been presented as an either/or choice, ignoring that undertaking effective due diligence can help companies manage legal and reputational risk, help build resilient supply chains and a social license to operate as well as address the expectations of investors and other stakeholders. 

"As we turn to implementation, it is time now to place focus back on how the processes of due diligence and disclosure can realise the core objective of these instruments," the Institute states.