Since the Omnibus proposal was announced on February 26th, consulting firms and non-profits have debated its impact—not just on reporting companies (as we discussed here) but also on the efficacy of the EU’s Green Deal and its broader sustainability ambitions.
On ‘Omnibus’ Proposal’s impact
Julia Otten, Senior Policy Officer at the consulting firm Frank Bold, criticized the proposed changes to the Corporate Sustainability Due Diligence Directive (CSDDD), arguing:
Julia Otten, Senior Policy Officer at the consulting firm Frank Bold, criticized the proposed changes to the Corporate Sustainability Due Diligence Directive (CSDDD), arguing:
The proposed changes… would effectively dismantle the law before it’s even started to apply, without presenting any proper evidence. Addressing crucial issues like child labour and forced labour requires targeted oversight beyond direct business partners in the value chain. It is absurd that the Commission is proposing to limit this. The sudden shift appears to prioritise short-term industry pressures over long-term sustainability goals and the protection of human rights.
Others echo this concern. Richard Gardiner, Strategic Public Policy Lead of the World Benchmarking Alliance, warned that removing the requirement in Article 22 of the CSDDD to “put into effect” climate transition plans could undermine climate action:
This goes completely against that intention [of other EU policies to effect a decarbonised economy] and worst-case scenario could reduce these plans to kind of a paper exercise, a publicity exercise, but something that doesn’t have any real effect on how the company functions.
Similarly, Mariana Ferreira of WWF described policy changes to the EU Taxonomy as a “significant butchering” of the framework. While the revised taxonomy still covers major corporations, the reduction in scope and materiality thresholds for reporting weakens its effectiveness, she argued.
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Such omissions reduce accountability and hinder firms, investors, and stakeholders from assessing whether climate policies achieve their intended impact due to diminished availability of comparable data. While the proposal’s focus on quantitative disclosures may improve some comparisons, many climate advocates, regulators, and investors stress that climate risks are financial risks—making robust reporting essential for economic stability.
The legislative process for this proposal is far from final. Experts predict that the most urgent element—the so-called “stop the clock” provision—may not be finalized until Q3 of this year, ensuring a lengthy and contentious debate. Positions vary across the EU: while countries like France, Germany, and Poland are expected to support the simplifications, others, including Spain and Italy, argue that the proposed changes are too extreme, according to Tony Christensen, Director of Position Green.
As negotiations continue, sustainability professionals across Europe will be closely watching how the Omnibus proposal evolves and what it means for the future of the EU’s sustainability strategy.
Sources:
– “EU omnibus sustainability proposal: Why experts are concerned” by Moriah Costa for Green Central Banking (Feb 2025) EU omnibus sustainability proposal: Why experts are concerned – Green Central Banking
– “EU Omnibus Unveiled: Key implications for CSDDD, CSRD, and EU Taxonomy” Webinar by WWF, World Benchmarking Alliance, Frank Bold, ShareAction, and the European Coalition for Corporate Justice (Feb 2025) EU Omnibus Unveiled: Key implications for CSDDD, CSRD, and EU Taxonomy
– “EU sustainability report ‘Omnibus: what we know so far” Webinar by Position Green (Mar 2025) EU sustainability reporting “omnibus”: What we know so far
– “First EU Omnibus proposals on sustainable finance raise concerns for investors” by Leo Donnachie for the Institutional Investors Group on Climate Change (Mar 2025) First EU Omnibus proposals on sustainable finance raise concerns for investors
– “Frank Bold warns: reckless Omnibus proposals threaten to roll back a decade of EU sustainability progress” by Sarah Chenoun for Frank Bold (Feb 2025) Frank Bold warns: reckless Omnibus proposals threaten to roll back a decade of EU sustainability progress | Frank Bold
– “‘Omnibus’ package explained: Key proposed changes to the EU Taxonomy” by Tony Christensen for Position Green (Mar 2025) ‘Omnibus’ Package: Key EU Taxonomy changes explained
