EU: Experts analyse key implications of Omnibus package for CSDDD, CSRD, and EU Taxonomy
โEU Omnibus Unveiled: Whatโs at stake for the EUโs sustainability framework?โ, 7 March 2025
Frank Boldโs Julia Otten presented our views at a webinar co-organised with ShareAction, WWF European Policy Office, the European Coalition for Corporate Justice and the World Benchmarking Allianceโฆ
Find below a summary of the key points discussedโฆ
1. Reducing the Corporate Sustainability Due Diligence Directive below OECD and UNGPs standardsโฆ
By discouraging companies from checking their suppliers beyond Tier 1, the Omnibus proposal breaks with the risk-based approach established by international standardsโฆ
Allowing companies to only suspend contracts with high-risks suppliers and review their due diligence process every 5 years will enable them to continue engaging in risky business ties with little accountabilityโฆ
Narrowing the engagement with smaller suppliers puts workers and the environment at greater risk.
2. A race to the bottom for civil liability and penaltiesโฆ
The deletion of EU-wide civil liability provision is a clear step back from harmonisationโฆ
The cancellation of the obligation to provide representation mechanisms will make it harder for victims to be represented by NGOs and trade unionsโฆ
Changes to administrative liability in the CSRD now give Member States a lot of discretion in setting maximum limits for penalties, which will lead to a race to the bottomโฆ
3. Legal uncertainty and major confusion for companiesโ sustainability reporting
The so-called โStop the clockโ proposal is misleading for companies on what is applicable to them and how to prepareโฆ
It is crucial to discuss what midcaps actually need, and provide them with proportionate standardsโฆ
The omission of sector-specific guidance means that the European Commission has given away its own power to international standard settersโฆ
4. Less data, less accountability: a weakened EU Taxonomy that undercuts sustainable investmentโฆ
The 10% materiality threshold threatens the objectives of the EU Taxonomy, โฆ
The combination of the reduction in scope of the EU Taxonomy and the materiality threshold threatens the Green Bond initiative that depends on this dataโฆ