THE BIG EU DEREGULATION Disastrous Omnibus proposal erodes EU’s corporate accountability commitments and slashes human rights and environmental protections. 10 March 2025, Brussels
The publication by the European Commission of its Omnibus proposal revising key corporate sustainability laws sends a clear political signal: President Ursula von der Leyen is deprioritising human rights, workers’ rights and environmental protections for the sake of dangerous deregulation. The Council and Parliament must urgently show leadership by blocking this damaging proposal, as it is jeopardising the very objectives of these laws and 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. The Omnibus proposal affects landmark laws passed under the EU’s Green Deal, including the Corporate Sustainability Due Diligence Directive (CSDDD), the Corporate Sustainability Reporting Directive (CSRD), and the Taxonomy Regulation. These laws mandate responsible business practices, introduce accountability for corporations abusing human rights and damaging the environment, and provide access to justice for survivors. They also aim to improve transparency on sustainability reporting and help guide sustainable investment. These are all essential to the EU meeting its goal of being the first climate-neutral continent by 2050. When President Ursula von der Leyen announced late last year an Omnibus proposal to simplify reporting and sustainability requirements for companies, she committed to upholding in full the spirit and “content of the law,” and stated that the goal of the exercise was to reduce overlapping obligations. The proposal published on 26 February represents a stark departure from this promise and, if implemented, will wipe-out the core purpose of these laws.
The Omnibus proposal would axe many of the CSDDD’s key provisions, making it virtually toothless. It would also delay by one year the transposition of the Directive by the EU Member States. If implemented, in practice this could result in: ● Civil liability will to a much larger extent be left to EU Member States’ discretion, with the potential of drastically reducing access to justice for victims in front of EU courts. Representative actions are removed, meaning that Non-Governmental Organisations, trade