Omnibus undermines the essence of CSDDD

IUCN NL joins over 360 organisations in calling on the European Parliament and EU Council to block the Omnibus proposal. 

Header photo: © Dušan Cvetanović

The European Commission proposes to adjust certain provisions of the Corporate Sustainability Due Diligence Directive (CSDDD) less than a year after the heavily negotiated adoption of the CSDDD. The Omnibus proposal also seeks to revise certain provisions of the Corporate Sustainability Reporting Directive (CSRD). This is done under the argument of simplicity and deregulation.  

Antoinette Sprenger, senior expert environmental justice at IUCN NL: ‘The CSDDD and the CSRD were important steps towards assurance of corporate accountability and the reduction of negative impact of companies on workers, citizens, Indigenous peoples and the environment. They force companies to take measures in their business operations to prevent human rights violations and environmental pollution in their value chains.’  

If adopted the Omnibus Regulation would, among others, reduce the current obligation for companies to perform due diligence for their complete value chain. The proposal undermines not only the EU’s commitment towards its green ambitions and protection of human rights but also its credibility as a reliable law maker. By limiting due diligence to direct suppliers, companies will have no obligation to identify risks and potential harm further down the chain, whilst that is where most risks are. Only if the company has ‘plausible information’ about impacts at the level of its indirect suppliers is it required to perform further due diligence.  What exactly the interpretation of ‘plausible information’ is, remains to be seen. 

Sprenger: ‘Ultimately, nature, as well as the Indigenous and local communities who depend on their natural environment for their livelihoods, will suffer the consequences of this proposal.’ 

We therefore urge the Council of the EU and the European Parliament, as a matter of urgency, to ensure that in the upcoming legislative negotiations, the Omnibus proposal is revised to ensure that any amendments seeking to weaken the CSDDD are rejected.