The EU is currently in the process of revisiting key pieces of Green Deal legislation in an effort to “simplify” compliance burdens associated with ESG directives such as the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD), the Deforestation Regulation (EUDR) and the EU Taxonomy. The goal is to revisit these disparate pieces of legislation through one directive, referred to as the “Omnibus.” However, many are arguing that “simplification” is a guise for rolling back and defanging sustainability directives. A group of eight NGOs is challenging the EU Commission’s process for developing the Omnibus proposal, arguing that it was undemocratic and led by niche corporate interests. The European Coalition for Corporate Justice states in a joint press release accusing the Commission of:
- “Failing to properly gather evidence and assess the environmental and social impacts of amending corporate laws designed to protect citizens in the EU and beyond;
- Sidestepping broad consultations to favour closed-door meetings dominated by oil and gas industry interests (the content of which were revealed only through press leaks)
- Failing to assess whether its proposal aligns with the EU’s climate-neutrality target – in breach of its obligations under the European Climate Law;”
The complaint is before the European Ombudsman, a governmental body that has investigative, but not enforcement, powers. Even if the Ombudsman acts on the complaint and opens an official inquiry, they will not be able to alter the EU Commission’s processes directly. However, a negative finding along with official recommendations could introduce political pressure which may influence how the EU Commission conducts future lawmaking.
Our members can learn more about Omnibus developments and CSRD reporting here.
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