A recent Ipsos survey reveals that three-quarters of Europeans support holding large companies accountable for human rights and environmental violations across global supply chains. This sentiment surfaces as the European Union considers softening corporate sustainability laws. Amnesty International highlights that the poll included over 10,000 respondents from ten European countries. In addition to the 75% backing corporate accountability, 58% supported the EU’s Corporate Sustainability Due Diligence Directive (CSDDD), which aims to press companies toward responsible and sustainable behavior.
However, European legislative actions appear to be moving in an opposite direction. Amidst the backing for the CSDDD, the EU has introduced the Omnibus proposal, which seeks to ease regulatory burdens on businesses to enhance competitiveness. Critics argue that this could weaken the very standards meant to ensure corporate accountability. A key concern is the dilution of climate obligations, as the proposal only requires businesses to adopt transition plans without a clear implementation mandate. Moreover, due diligence obligations would be constrained to direct business partners, leading to potential oversight of risks within broader supply chains.
Human rights organizations and legal experts are voicing their discontent, warning these amendments could erode European corporate sustainability standards. Beate Beller from Global Witness states that Europeans are urging their leaders in Brussels to commit to human rights and climate action, despite industry lobbyist pressures.
The debate further intensified with the Council of the EU’s action in June to simplify reporting and due diligence requirements, particularly for smaller companies, effectively narrowing the scope of the CSDDD. This amendment coincides with the decision to delay the implementation of both the CSDDD and Corporate Sustainability Reporting Directive by one and two years, respectively.
The European Parliament’s Legal Affairs Committee is set to vote on the Omnibus proposal, which could redefine the landscape of corporate responsibility in Europe. The broader question now involves whether the EU can balance its essential environmental and human rights commitments with industrial competitiveness.
For additional details, see JURIST.