Over 360 human rights organizations and activists, including the International Federation for Human Rights and eleven of its member groups, urged the EU to reject the proposed “Omnibus” directive, arguing that it would significantly weaken corporate sustainability laws.
The proposal, introduced by the European Commission in February 2025, aims to streamline corporate sustainability reporting and due diligence requirements. The proposal is part of a broader effort to reduce regulatory burdens on businesses and enhance the EU’s global competitiveness. However, critics warn that it undermines key aspects of the EU’s Corporate Sustainability Due Diligence Directive, the Corporate Sustainability Reporting Directive, and the Taxonomy Regulation. If adopted, the proposal would exempt certain companies from existing reporting standards and shift sustainability obligations away from indirect supply chain partners, potentially undermining efforts to prevent human rights violations and environmental harm.
One of the primary concerns is that the Omnibus proposal narrows due diligence obligations to direct business partners, potentially allowing companies to overlook human rights and environmental risks deeper in their supply chains. Additionally, the proposal weakens corporate climate obligations by requiring businesses to adopt transition plans without a clear mandate for implementation, reducing accountability for environmental commitments.
The reduced climate obligations could also slow progress toward the EU’s climate goals, as companies would not be compelled to take concrete action on their transition plans. Additionally, the loosening of reporting standards may lead to a lack of transparency, making it harder for investors, regulators, and the public to assess corporate sustainability efforts. Critics warn that these changes could create an uneven playing field, favoring companies that neglect sustainability while disadvantaging those already invested in responsible business practices.
As the European Parliament and Council consider the Omnibus proposal, human rights organizations urge them to uphold the integrity of existing corporate sustainability laws to protect human rights and the environment.