Omnibus Under Fire: What's at Stake?

Omnibus Under Fire: What's at Stake?

The EU’s Omnibus proposal is at the center of a heated debate. Aimed at simplifying sustainability reporting, it raises a critical question: Does simplification mean less accountability? 

In my previous posts, I discussed the speculations surrounding the EU’s Omnibus proposal. Now, let’s dive into the key perspectives on what’s really at stake.

While some argue it reduces unnecessary burdens, others caution it could weaken transparency and slow down corporate sustainability progress.

What’s really at stake? Continue to read key perspectives by member states, international organizations, CSOs and experts.

1. Member states

Member states are divided, a few examples:

German Finance Minister Joerg Kukies calls for a two-year delay on CSRD compliance and removal of sectoral reporting requirements. Yet, Germany's official advisory committee asked for sector-based materiality; less disclosure requirements; templates for climate transition plans.

The French government calls for a "massive regulatory pause", a review of pending EU legislation, and a possible revision of CSRD to adapt to global economic realities.

Italy has urged delay on CSRD until “excessive implementation costs” are addressed.

The Netherlands has recently proposed to transpose the CSRD into national law and authorities emphasize the importance of maintaining rigorous and comparable sustainability reporting.

2. International Organizations

The UN Working Group on Business and Human Rights stated that it encourages the EU not to reopen the text of the CSDDD for the following reasons: Businesses need legal certainty; the CSDDD builds upon universal instruments; Transparency and participation in regulatory processes is of paramount importance.

Read the statement here.

3. Investors

More than 200 investor groups and financial institutions managing €6.6 trillion assets under management urge the Commission to preserve “the integrity and ambition” of EU sustainability rules, warning that large-scale revisions could create legal uncertainty and undermine investment stability.

Read the joint statement here.

4. Businesses

Large corporations argue that constant regulatory changes create legal uncertainty and risk undermining competitiveness after companies have already invested heavily in compliance.

Read the statement by major corporations including Unilever and Nestlé here.

Small and Medium-sized Enterprises (SMEs) welcome simplification initiatives, noting that excessive reporting demands from larger corporations often cascade down to smaller suppliers.

Read more here.

5. Civil society organizations

Civil Society Organizations (CSOs) stress that reducing reporting obligations might diminish transparency and accountability in corporate sustainability practices.

150+ CSOs from across the globe reaffirm 'no' to reopening EU sustainability legislation and allege European Commission due diligence roundtable "heavily weighted" in favor of "business interests".

6. Academics & Experts

Academics, economists and business and human rights (BHR) experts worry that “simplification” may become a pretext for watering down sustainability ambitions.

240 European researchers, led by the Veblen Institute, have issued an open letter warning of the dangers of the ‘Omnibus’ initiative. Read the letter here.

BHR experts fear the green deal is at risk. Read the letter here.

What’s your take on Omnibus?

Will Omnibus strike the right balance between efficiency and accountability, or is it a step back for ESG? Share your thoughts below or reach out if you need help with sustainability reporting — I’d love to assist!