Danish Institute for Human Rights is concerned with the proposals made by the European Commission, the European Council and the European Parliament for the so-called Omnibus I - which risk undermining the EU corporate sustainability framework.

On 13 November, a majority in the European Parliament voted to adopt the parliament’s position on proposed changes to the Corporate Sustainability Due Diligence Directive (CSDDD) and the Corporate Sustainability Reporting Directive (CSRD) in their Omnibus I proposal. Now trilogue negotiations between the Parliament, the European Commission and the European Council will begin.

While the stated aim of the Omnibus I package is simplification, the Danish Institute for Human Rights warns that the current proposals risk dismantling key elements of both directives, reducing them to procedural formalities and penalising companies already leading on sustainability.

The coming months offer a final opportunity to recalibrate the Omnibus and ensure it delivers on its promise of simplification without sacrificing substance. The Danish Institute for Human Rights calls on EU co-legislators and the Danish Presidency to ensure that the final Directive send a clear signal to business...

Key concerns include

• Drastic reductions in scope: Proposed thresholds would exclude thousands of companies with significant human rights and environmental impacts, undermining the effectiveness of both directives.
• Departure from risk-based due diligence: Proposals limit due diligence to direct suppliers and put restrictions on engaging with or seeking info from business partners, contradicting international standards and ignoring that most severe risks often occur deeper in the value chain.  
• Loss of harmonised civil liability: Removing the EU-level liability regime weakens enforcement and leaves victims navigating fragmented national systems.
• Removal or weakening of climate transition plans: Proposals either weaken or delete obligations for companies to make climate transition plans, ensuring their strategies and business models are compatible with the Paris Agreement.