The vote preserves mandatory climate transition plans and maintains a relatively robust due diligence framework for companies, both essential for managing climate and social risks. However, it also raises the company size threshold and does not improve the civil liability regime, marking a significant setback for enforcement and corporate accountability.
Richard Gardiner, Interim Head of EU Policy at ShareAction, commented:
“Today’s outcome shows the good, the bad, and particularly the ugly of where Europe stands on sustainable business rules. The decision to remove civil liability is a serious setback for corporate accountability and enforcement. Companies should be held responsible when they fail to prevent harm to people and the planet.
“There are some positive elements that should not be overlooked. Mandatory climate transition plans and a strong due diligence framework remain vital tools for investors and civil society to push real-economy companies on climate and social risks.
“But let’s be clear: everything is being watered down, and few in power are truly standing up to stop it. We are deeply concerned about the political direction and what it means for enforcement and uptake by companies. Time is running out and this constant back-and-forth is holding back Europe from delivering on its sustainability commitments.”
Notes to editor:
The final Omnibus compromise package:
- Raises the scope to companies with 5,000+ employees and €1.5 billion turnover;
- Sets the value chain cap at the same level (5,000+ employees);
- Introduces a risk-based approach to due diligence;
- Maintains mandatory climate transition plans
- Does not improve civil liability provisions, limiting enforcement and remedies.
The Omnibus proposal forms part of the European Commission’s wider “competitiveness and simplification” agenda, which aims to reduce reporting obligations and perceived administrative burdens under EU sustainability laws such as the Corporate Sustainability Due Diligence Directive (CSDDD) and the Corporate Sustainability Reporting Directive (CSRD).
