Investigation Commenced by EU Ombudsman Regarding Commission's Procedure for Lessening Sustainability Reporting and Due Diligence Standards
The European Commission's Omnibus proposal, released in late February 2025, has come under scrutiny following a series of complaints alleging procedural irregularities. The EU Ombudsman, Teresa Anjinho, has initiated an inquiry into the process behind the proposal.
Eight organisations have expressed their support for the inquiry, stating that the Commission's actions have disregarded the rights of both people and the planet. They are particularly concerned about laws aimed at tackling the environmental and human costs of global value chains.
The complaints include allegations that the Commission failed to conduct a public consultation and carry out a proper impact assessment prior to launching the Omnibus proposals. The ombudsman has asked the Commission to elaborate on the reasons for its decision not to carry out a public consultation.
The Omnibus package includes proposals for major changes to the Corporate Sustainability Reporting Directive (CSRD). It proposes that the CSRD apply only to companies with more than 1,000 employees and revenue greater than €50 million net turnover. The proposals also aim to reduce the sustainability reporting and regulatory burden on companies.
However, the organisations are concerned about the Commission's rushed rollbacks of three key components of the Green Deal. The Omnibus package proposes limits on sustainability information requests on smaller companies and suggests that the Corporate Sustainability Due Diligence Directive (CSDDD) require less frequent due diligence monitoring.
The ombudsman has also asked if the Commission carried out a climate consistency assessment for the proposal, a requirement under the European Climate Law. The identity of the person who did not conduct the public consultation and the comprehensive environmental and human rights due diligence obligations in the European Commission draft on the omnibus proposals is not disclosed in the EU Ombudsman's letter to the President of the European Commission.
The ombudsman has also asked the Commission to explain the "urgency" behind its decision not to conduct an impact assessment for the Omnibus proposal. Furthermore, the ombudsman has asked for more detail on meetings with companies and other stakeholders that the Commission held in February 2025.
The inquiry is a significant step towards ensuring transparency and accountability in the European Commission's decision-making process. The outcome of the inquiry is expected to provide insights into the Commission's approach to the Omnibus proposal and its commitment to upholding the rights of people and the planet.
