The European Commission has finally presented the proposed omnibus directive. It removes 80% of the companies concerned from the corporate sustainability reporting directive's (CSRD) non-financial reporting framework, but above all significantly waters down the corporate sustainability due diligence directive (CSDDD). Its application is to be postponed for one year, the publication of the due diligence plan would only have to be carried out once every five years, and the obligations would be limited to direct suppliers.
The omnibus package presented on 26 February amends the CSRD, which has just come into force, and the CSDDD, which has not yet been transposed. Although the European Commission recognises that it has not been able to assess their effect, it believes that the context requires them to be reviewed. “The different regulatory approach of other major jurisdictions with regard to corporate sustainability reporting and due diligence raises questions about the effects of these laws on the competitive positioning of EU companies,” the Commission explains.
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Article authors
Antoine Piel
Section Head at Mind HR