The big EU deregulation: disastrous Omnibus proposal erodes EU’s corporate accountability commitments and slashes human rights and environmental protections.
The European Commission has released a controversial Omnibus proposal that could severely weaken key corporate sustainability laws and environmental protections in the EU. Published on 26 February, the proposal aims to revise several landmark Green Deal laws, including the Corporate Sustainability Due Diligence Directive (CSDDD) and the Corporate Sustainability Reporting Directive (CSRD). Despite President von der Leyen’s earlier commitment to maintain the “content of the law,” the proposal represents a significant departure from this promise.
The proposed changes would substantially reduce corporate accountability measures. Key modifications include limiting companies’ assessment of harm to direct business partners only, removing the obligation to implement Climate Transition Plans effectively, and reducing monitoring frequency from annual to every five years. The proposal would also delay CSRD application by two years for certain businesses and exclude approximately 80% of companies from sustainability reporting obligations.
The proposal has faced widespread opposition from various sectors. In January, 170 organisations representing civil society, human rights defenders, trade unions and climate activists jointly opposed the planned Omnibus. Additional criticism has come from large companies, business associations, responsible investors, economists, researchers and the UN Business and Human Rights Working Group.
