Omnibus Package: 360 organizations urge the EU to reject the changes

Disclaimer: this is an automated translation from Italian. Go to the original article.

A front composed of 360 European civil society organizations has issued a call to the Council of the European Union and the European Parliament to reject the proposed changes in the so-called Omnibus Package. The reform, aimed at simplifying some existing regulations, risks seriously compromising corporate reporting and due diligence obligations in sustainability matters, impacting key directives such as the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD) and the regulation on the EU Taxonomy. According to the signatories, the legislative package represents a dangerous step backward from the commitments made by the EU on sustainability and human rights.

“The international community looks to Europe as a model of leadership and stability” reads the joint statement of the organizations. “The EU has the opportunity to affirm its leadership in sustainability policies, ensuring that current regulations are not weakened.” Promoting responsible business practices means not only protecting the environment and human rights but also building a more stable and resilient market in the long term. However, the changes expected from the Omnibus Package call into question the solidity of these regulations, reducing obligations for businesses and delaying the implementation of rules. In particular, the proposal significantly affects the CSDDD, reducing its impact on various critical aspects.

According to the signatory organizations, the proposed changes risk rendering the CSDDD, ineffective, with direct consequences on both human rights protection and the fight against climate change. The main critical aspects highlighted in the document are:

Civil liability at the discretion of Member States: the proposal transfers to national states the ability to define corporate liability rules, limiting access to justice for victims of violations.
Elimination of representative actions: NGOs, trade unions, and human rights institutions could no longer represent victims in court, hindering the use of legal protection mechanisms.
Reduction of the responsibility chain: companies would only be required to assess the impacts generated by direct trade partners, excluding those along the entire value chain.

In addition to the three aspects mentioned above, the document reports five other critical issues:

Climate Transition Plans without implementation obligation: companies might limit themselves to drafting sustainability plans without the obligation to actually implement them.
Limitation of states' ability to adopt stricter regulations: member states would no longer have room to tighten rules on the prevention and mitigation of environmental and social impacts.
Reduced or non-existent sanctions: removing the minimum threshold of 5% of revenue for penalties could lead to symbolic punitive measures.
Limited stakeholder engagement: reduced consultation with key stakeholders, such as human rights organizations and consumer groups.
Fewer controls over due diligence measures: the frequency of monitoring the effectiveness of measures would be reduced from one to five years.

The signatory organizations argue that the European Parliament and the EU Council should approach future legislative discussions with a rigorous approach: "We urgently request that any revision of the CSDDD be limited to interpretive measures, such as guidelines and delegated acts, without altering the legal text." Regarding the CSRD, it is also requested to lower the thresholds for companies subject to the regulation, while ensuring proportionate standards for medium-sized enterprises. The outcome of the upcoming negotiations will determine the future of the European Union's sustainability reporting. The decision on how to proceed with the Omnibus Package will not only impact European environmental and social policies but will also affect the EU's credibility as a global leader in sustainability.

This article was created as part of the "Biodiversity services EU expansion" project (CUP: E43D22000480009) under the Lombardy Region call "PR FESR 2021-2027 – INTERNATIONALIZATION LINE 21-27", aimed at supporting the internationalization of Italian companies. 3Bee is the naturetech company that develops innovative technologies for monitoring, protecting, and regenerating biodiversity, supporting businesses in the development of customized climate strategies based on the analysis of their impacts and dependencies on nature. With a consolidated portfolio in Italy, Germany and France, and significant partnerships, 3Bee continues its expansion into international markets to create a tangible impact through technology.