The EU’s "Omnibus package" has finally arrived, bringing with it a new era of deregulation and corporate impunity.
The long-awaited publication of the "Omnibus" confirmed fears that the initiative intends to significantly dilute the EU's trio of sustainability policies, as part of its 'anti red tape drive'. Extensive revisions to the CSDDD effectively reopen the legislation, undermining painstaking efforts from civil society to embed meaningful human rights due diligence principles into the law. Without robust pushback from the EU Parliament and member states, the Omnibus looks set to derail the EU's sustainability ambitions.
Meanwhile, the ripple effects of the Trump administration’s deregulatory and nationalist agenda are being felt across the globe. This trajectory threatens to fuel corporate complicity in conflict, further jeopardise workers rights and stall innovation on sustainable development.
Experts are calling on responsible companies and governments across the globe to take principled and bold action to protect workers, communities and consumers from injustices linked to unchecked corporate power.
Upcoming Events:
BHRC Webinar Series on IHL Continues
On March 6th, BHRC will host the next webinar in its series on international law and corporate accountability. This session focuses on the direct applicability of IHL to businesses – breaking down whether and how companies are legally bound by IHL, and the role of ICL in enforcing corporate responsibility. In this conversation Wayne Jordash KC will discuss the revised Private Business and Armed Conflict Report. Click here to register. Join us 6th March @ 11am CET.
EU Deforestation Regulation (EUDR)
The US paper industry is lobbying Trump to declare the US 'deforestation-free', with the aim of lightening EU deforestation rules.
The CEO of the American Forest and Paper Association (AF&PA) revealed that the group is urging President Trump and his trade advisors to negotiate with the European Union, "to ensure the U.S. is recognised as a country that wisely manages its forest resources and must be recognised as not contributing to deforestation."
This move would make it easier for exporters to meet the bloc's environmental rules, without conducting basic due diligence - thereby avoiding “costly and unnecessary obligations” on US companies.
Recommended Reading:
Open Atlas counters misinformation surrounding the EUDR:
The post busts popular myths such as, the “EUDR means a mountain of paperwork”, “the EUDR is discriminatory and creates barriers to trade” and “the EUDR is an SME killer.”
Implementation timeline:
Obligations stemming from the regulation will be binding from:
- 30 December 2025: for large operators and traders
- 30 June 2026: for micro- and small enterprises
Corporate Sustainability Due Diligence Directive (CSDDD):
The EU Commission’s long-awaited Omnibus package significantly weakens the CSDDD and the CSRD.
The publication of the 'Omnibus' on February the 28th confirmed fears about the direction of the EU approach, sparked by a leaked draft earlier this month.
Key revisions to the CSDDD under the Omnibus simplification plans are:
- Restriction of due diligence obligations to Tier 1 suppliers, rather than subcontractors and suppliers.
- Reduction of supply chain monitoring to once every five years.
- No obligation on companies to terminate business relationships as a last resort.
- Companies won’t face penalties.
- Postponement of its application from 2027 to 2028.
Proposed changes to the CSRD would exempt 80% of companies from reporting obligations – and severely limit the sustainability information that large companies and banks could request from smaller companies.
The proposal now moves to the European Parliament and the Council for approval.
NGOs, investors, businesses and parliamentarians react to the release of the EU’s simplification plan.
Human Rights Watch: Helene de Rengerve, Senior Advocacy on Corporate Accountability, writes, “Under the garb of ‘simplifying’ rules for giant corporations, the Commission’s Omnibus proposal guts its own achievements on corporate accountability….Today, the Commission is siding with powerful corporations rather than victims of corporate abuse around the world.”
Share Action: The Head of EU Policy, Maria van der Heide, brands the Omnibus “a major setback for Europe’s sustainability agenda.”
MEP Lara Wolters responds to the EU's “reckless proposal”: “We couldn’t have been more clear - we want to simplify EU rules for companies, but we cannot accept the watering down of sustainability, labour and human rights standards in the CSDDD and CSRD.”
Fair Trade Advocacy Office (FTAO): Alena Kahle's reaction has drawn attention to an accompanying Omnibus publication released by the Commission, which assesses the pros and cons of the proposal. The document concedes that, under the revised text, "companies might be less able to carry out a structured risk analysis and proper risk management."
The UN Special Rapporteur on Human Rights Defenders, Mary Lawlor's, shared concerns about the proposals: ‘which would gut the EU's due diligence directive, agreed after painstaking negotiations to put human rights at the centre of EU business.’
Tony's Chocolonely: A strong statement from the chocolatier calls out the Ommibus, urging 'all co-legislators (EP + Council) to reject this package and focus on what really matters: delivering clear guidelines + tools businesses can use to comply with these new laws – as they previously agreed.'
ESG Investor: “Investors worst omnibus fears realized”
Friends of the Earth Europe: ‘Green ambition biggest loser in deregulation game’
Prior to the release of the Omnibus, EU member states remained divided on the EU Commission's 'Simplification' agenda - with Spain calling for the retention of ESG regulations and Italy pushing for major revisions.
SPAIN: Earlier this month, in a letter to the EU Commission, Spain affirmed its support for corporate sustainability laws and warned against altering the substance of the regulations. While the government expressed gratitude for the EU's simplification efforts and its support for business interests, their message is to keep the rules untouched.
ITALY: Italy's finance minister Giancarlo Giorgetti urged the EU not to delay the CSRD for the tens of thousands of companies which will report under the rules this year. However, the government did take the position that smaller companies should get more time and simpler rules than currently planned - and the EU should also delay its due diligence policy.
Analysis from Global Witness’ Beate Beller determined that the demands from the French and Italian governments ‘could exclude more than two thirds of the companies currently covered by the CSDDD’ – including much of the carbon-intense transport sector.
Diverse stakeholders published statements expressing their commitment to upholding the CSDDD and CSRD.
75 Global South orgs signed a joint statement warning the EU not to backtrack on the CSDDD and reasserting that, “Europe’s economy shouldn’t depend on business practices that harm human rights and the environment in the Global South”.
Business, trade and member-led groups, including ETI, published a joint Statement on the vitality of a strong EU Sustainability Due Diligence Framework.
Recommended Reading on the CSDDD:
Business & Human Rights Resource Centre's think piece unpacks ‘Why Europe must hold its nerve on CSDDD and raising the bar for businesses.’
The commentary reflects on how the EU should respond to Trump’s ‘agenda of narrow economic nationalism’, arguing that geopolitical riptides should compel the EU to double down on its efforts to "foster sustainability and innovation rather than concede ground to the new US world vision."
‘The broad evidence is that smart regulation like this in fact encourages innovation by rewarding forward-looking businesses and raising costs to laggard companies.’
A new SOMO report finds companies attacking the CSDDD for placing undue financial burdens ‘pay out billions to shareholders’
Implementation timeline:
- 26 February 2025: The EU Commission’s omnibus simplification proposal moves to the European Parliament and the Council for approval.
[Under review following the Omnibus proposal]
- Present - 26 July 2026: Member States transpose the requirements set by the Directive.
- 2026/2027: CSDDD takes effect at the national level.
- From 2027: Companies with 5,000+ employees and a net turnover of 1 ,500 million EUR must comply.
- From 2028: Companies with 3,000+ employees and a net turnover of 900 million EUR must comply.
- From 2029: Companies with 1,000+ employees and a net turnover of 450 million EUR must comply.
EU Forced Labour Regulation (EUFLR)
Updates
New investigative research from the Cotton Campaign exposes state-imposed forced labour in the annual cotton harvest in Turkmenistan and reveals routes through which Turkmen cotton enters global supply chains.
This fresh evidence should encourage states to develop tailored methods to identify and mitigate exposure to state-imposed forced labour practices.
Reporting by the Environmental Justice Foundation discloses evidence that North Koreans are subjected to forced labour practices on Chinese fishing vessels in the Indian ocean.
The report documents suspected supply chain links between Chinese-owned tuna longliners participating in forced labour and markets across the EU, the UK and Asia.
To reach this conclusion, EJF investigators conducted interviews with Indonesian and Filipino crew members on board Chinese tuna longliners, alongside analysing intelligence gained through open sources and multimedia evidence provided by crew.
Recommended Reading:
Human Rights Watch and Cornell University released a new report on the EUFLR, advocating for the law to ‘catalyse business efforts to tackle forced labour’
The collaboration advises companies to take concerted steps to get ahead on compliance with the FLR, including:
- Engagement with local communities, stakeholders and workers to identify specific risks
- Investment in staff training on implementing the regulation.
Implementation timeline:
- 2026: EU Commission to publish guidelines, including a forced labour risk database.
- 14 December 2027: law becomes applicable
Thanks for reading! You can find more information on BHRC's work here.
Disclaimer: This newsletter is for general informational purposes only. It does not, and is not intended to, constitute legal advice.