In an appeal to the European Union, over 360 human rights organizations and activists, including the International Federation for Human Rights, have called for the rejection of the proposed “Omnibus” directive. They warn that the directive could significantly weaken existing corporate sustainability laws. The appeal raises concerns over the potential dilution of measures aimed at ensuring corporate accountability in human rights and environmental impacts.
The Omnibus directive proposal was introduced by the European Commission in February 2025. It is designed to simplify corporate sustainability reporting and due diligence obligations, part of a wider effort to alleviate regulatory pressures on businesses and enhance the EU’s competitive edge globally. However, critics caution that it may erode critical elements of established frameworks such as the Corporate Sustainability Due Diligence Directive, the Corporate Sustainability Reporting Directive, and the Taxonomy Regulation.
The proposition allows for certain businesses to be exempt from current reporting standards while transferring sustainability responsibilities away from indirect suppliers. This change, human rights groups argue, could impede initiatives aimed at halting human rights abuses and environmental damage.
A key issue highlighted by the critics is the potential narrowing of due diligence obligations to direct business partners, which could permit companies to disregard risks in deeper tiers of their supply chains. Moreover, the proposal appears to relax corporate climate responsibilities by mandating the preparation of transition plans but without requirements for their actual implementation, thus seemingly reducing accountability.
This perceived weakening of corporate climate obligations might negatively impact the EU’s climate objectives by allowing companies to sidestep substantive actions pertaining to their environmental transition plans. It could result in decreased transparency and hinder investors, regulators, and the public from evaluating the sustainability efforts of corporations effectively. Furthermore, such changes might create disparities in the business landscape, benefiting those neglecting sustainability while disadvantaging those committed to responsible practices.
As the European Parliament and Council deliberate over the Omnibus proposal, these human rights groups emphasize the necessity of maintaining strong corporate sustainability laws to safeguard human rights and the environment. For further insight into this directive, visit the JURIST report.