As the EU's Omnibus package reaches the EU Council and Parliament, divisions around corporate responsibility, the green transition and the meaning of "efficiency" rage on.

Last week, the European People's Party called for Parliament to vote on a “fast track” procedure for the Commission's “stop the clock” proposal, which seeks to delay the implementation of reporting requirements under the CSRD and CSDDD. Experts expect a decision on timelines to be made by the end of summer.

Meanwhile, businesses, trade unions and civil society groups are attempting to stall movement on the Omnibus – calling on both bodies to reject the most corrosive elements of the proposals and defend the principles of meaningful human rights due diligence.

On the other side of the globe, US legislators have tabled a bill which would allow US companies to evade responsibilities under extraterritorial laws (such as the CSDDD). The submission coincides with news that UN experts are calling on the US administration to recommit to human rights at home and abroad.

Find all this and much more below...

Upcoming BHR Event

Our next webinar will address the challenges of working in occupied territories, including in the OPT and Western Sahara. Working in occupied territories presents unique challenges for business in respecting the human rights of those communities that remain in those territories. This seminar will explore some of the complexities of assessing what is responsible business and whether and how it is possible to avoid contributing to war crimes (e.g., forcible displacement, unlawful use of public and private property, etc.,),  or violating fundamental principles of international law, including the unlawful use of force, the right to self-determination, non-discrimination, etc.).

Register here to join us on April the 3rd at 1pm CET.

Corporate Sustainability Due Diligence Directive (CSDDD)

Update:

The Omnibus package has been sent for approval to the EU Parliament and Council – what’s next?

The EU Council has set up a new body dedicated to discussing simplification proposals. Structurally, the body will be a subgroup of the Antici Group – and will be under direct control of the Coreper, whose members hope to see an agreement on the Omnibus in the next few months.

On the EU Parliament side, there is expected to be significant pushback on the Omnibus from the Social Democrats and the Greens. The Parliament's largest party, the EPP, would need support to push the omnibus through – so will either have to take a more nuanced approach to simplification or form a pro-Omnibus alliance with far-right parties.

The European People's Party (EPP) has called on the Parliament to fast track the Omnibus’s “stop the clock” proposal.

In a letter to the Parliament's President, Roberta Metsola, the EPP requested a fast-track procedure to be given to the Omnibus "postponement" proposal seeking to delay certain requirements on corporate sustainability and due diligence reporting under the CSDDD and CSRD. The letter asks for a vote "ideally" next week and "no later" than April.

The EPP should expect opposition from the S&D and Renew Europe, who are deeply skeptical of the Omnibus and will not want to push through a postponement.

The EU Parliament held its first debate on the Omnibus package, displaying stark division amongst MEPs.

Opening the debate, the EPP largely welcomed the Omnibus, labelling it a 'step in the right direction.' Meanwhile, right-wing parties ECR and ESN claimed the proposals do not go far enough in their simplification endeavour.

On the other end of the spectrum is the S&D, which rejects the Omnibus for favouring deregulation over true efficiency. Lara Walters MEP’s speech criticised the EU Commission’s emphasis on ‘simplification’ of the debate rather than the rules.

Republican Senators have tabled an Act to "shield" US companies from EU sustainability legislation.

The “PROTECT USA” Act, announced by Senator Bill Hagerty, would prohibit any US company from being forced to comply with the CSDDD or other extraterritorial ESG regulations. The legislation would ensure judgements made by foreign courts in relation to such regulations are not recognised and would 'block any adverse actions taken against companies in relation to the regulations.'

During the announcement, Hagerty said: “American companies should be governed by U.S. laws, not unaccountable lawmakers in foreign capitals. The European Union’s ideologically motivated regulatory overreach is an affront to U.S. sovereignty. I will use every tool at my disposal to block it.”

360 Human Rights groups urged the EU Council / Parliament to reject the EU Parliament’s Omnibus proposal and its bid for corporate impunity.

Notes/Further Reading:

Swedwatch analysis dives into companies' shareholder payouts to prove the negligible costs of CSDDD compliance.

The research finds Swedish companies 'that are in scope of the CSDDD and listed on the stock exchange had a net profit of €372 million (approximately 4,075 billion SEK) in 2023.'

Analysis by French NGO Reclaim Finance finds the EU Commission accepted lobbying requests by businesses and banks, while rejecting ALL requests by NGOs.

Of the requests, 70% of those made by MEDEF/BDI/Cofindustria, & 62% of those made by the banking lobby FBF were accepted, in comparison to 0% of those brought by environment and human rights NGOs.

Implementation timeline:

  • April 2025: EU Parliament vote expected on the “stop the clock” proposal (part of the omnibus simplification package.)

[Following timeline is now subject to change in response to the Omnibus]

  • 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 Deforestation Regulation (EUDR)

Updates:

The EU has released new guidance on the EUDR, in collaboration with UNEP-WCMC.

The guide provides supply chain scenarios for key commodities, including coffee, to support companies in their navigation of due diligence requirements.

Further Reading/ Listening:

BlackRock’s latest report takes the position that biodiversity, ocean health and ecosystem resilience ((include the protection of forests), are now financial priorities.

This understanding of 'nature' as a financial asset signals a significant market shift, catalysed by regulations such as the EUDR, which force businesses to account for nature-related risks.

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

EU Forced Labour Regulation (EUFLR)

Update: None

Further Reading: None

Implementation timeline:

  • 2026: EU Commission to publish guidelines, including a forced labour risk database.
  • 14 December 2027: law becomes applicable

Uyghur Forced Labor Prevention Act (UFLPA)

Update:

Thailand forcibly deported at least 40 Uyghur men to the Uyghur Region, following a decade of detention in a Thai immigration centre.

On Thursday the 27th of February at least 40 Uyghur men who'd spent a decade seeking refuge in Thailand were transported onto an unscheduled flight from Bangkok to the capital of the Uyghur Region. This comes after extensive pleas from international advocacy organisations and the men themselves to halt the deportation of individuals who are at high-risk of being subjected to arbitrary detention, forced labour, forced disappearance, torture and other "crimes against humanity" upon their return to the Region.

Human Right's Watch's Yalkun Uluyol's powerful piece underscores the danger and injustice awaiting the Uyghurs forcibly returned to China, based on his own memories of the Region.

The US has imposed visa restrictions on Thai officials in response to the deportation.

Recommended reading:

New research finds evidence that forced labour in the Uyghur Region continues to expand, despite the dismantling of internment camps.

The report published by the United States Holocaust Memorial Museum, reveals that nearly 3 million Uyghurs and other Turkic people were compelled to participate in forced labor placements in 2023 – more than any other recorded year.

Disclaimer: This newsletter is for general informational purposes only. It does not, and is not intended to, constitute legal advice.