Maria van der Heide, Head of EU Policy at ShareAction, commented:

"This is a very dark day for the EU. The European Commission is handing big businesses a free pass to avoid responsibility for their impact on people and the planet.

"The CSDDD is being reduced to an empty shell. What was meant to be a law ensuring companies take responsibility for human rights and environmental harm is now little more than a box-ticking exercise. The requirement for transition plans – a key tool to ensure businesses align with net-zero goals – has been watered down, turning it into meaningless paperwork rather than a real tool for decarbonization. Instead of protecting workers, communities and the environment, the EU is letting the world's biggest polluters and exploitative corporations off the hook.

"The attack on corporate transparency is just as severe. Slashing the number of companies required to report under CSRD and diluting reporting rules will create confusion, leaving mid-sized companies without clear standards and depriving investors of the critical data needed to drive the green transition.

"Meanwhile, the EU Taxonomy framework is at risk of being significantly weakened. By reducing both the number of companies and data points in scope and lowering technical standards, the Commission is opening the door to rampant greenwashing, making it harder for investors to distinguish truly sustainable businesses from those that are not.

"Overall, this first Omnibus package paints a picture of a weak European Union, ultimately creating uncertainty, dismantling safeguards, and undermining trust in the EU's ability to be a leader in sustainability. Rather than reinforcing Europe's resilience, this proposal weakens its foundation – leaving companies, workers, affected communities, and EU citizens to pay the price."