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Civil Society and Investor Response to the Omnibus Proposal

In response to the EU Commission's Omnibus Simplification proposal, announced by EU Commission President Ursula von der Leyen in February, the Investor Alliance for Human Rights signed several statements expressing concern about efforts to re-open the provisions of the legislation that comprise the cornerstones of the EU sustainable finance framework, namely the EU Taxonomy Regulation, the Corporate Sustainability Reporting Directive (CSRD), and the Corporate Sustainability Due Diligence Directive (CSDDD). These include the following:

  • A statement that calls for smart implementation of EU sustainability reporting standards by making compliance with rules more efficient. The statement was authored by Frank Bold and published on 12 December, 2024. It was signed by more than 90 organizations representing civil society, business, banks, and investor interests. It expresses deep concern over the misrepresentation of EU sustainability reporting as a threat to competitiveness. The statement signatories call on European and national policymakers to focus on supporting a smart and stream-lined implementation of EU sustainability reporting standards. It highlights the flexible and proportional nature of the framework and offers practical solutions to address over-compliance challenges.

  • A statement by the European Coalition for Corporate Justice (ECCJ), published on 14 January 2025 and signed by over 170 CSOs, which urges the Commission to maintain the timeline for transposing and implementing disclosure and due diligence legislation. It also calls for full transparency about the Omnibus process.

  • An investor statement authored by Principles for Responsible Investment (PRI), the European Sustainable Investment Forum (EUROSIF), and the Institutional Investors Group on Climate Change (IIGCC) that calls for the simplification of the EU sustainable finance framework, without opening the EU Taxonomy Regulation, CSRD, and CSDDD to wholesale revisions. Released on 3 February 2025 and signed by 162 investors, it emphasizes the critical role of reporting in driving responsible investment to meet sustainability goals.

  • A CSO statement, endorsed by over 150 CSOs and released on 5 February 2025, ahead of closed-door stakeholder consultations, which warns against an Omnibus proposal that would weaken agreed-upon sustainability goals and criticizes the inadequate consultative process under the EU Better Regulation framework.

The Commission has emphasized that scaling up sustainable finance is a major priority. Achieving this goal depends on access to consistent and reliable information about the sustainability performance of companies, which is crucial for enhancing transparency and comparability across markets.

Sustainability reporting is vital and enables companies to manage risks more effectively, identify opportunities, and drive long-term growth. Therefore, investors are supportive of the CSDDD and CSRD, as these frameworks enable them to manage their own risk exposure better and comply with their disclosure requirements.

At a moment where European leaders are seeking to boost competitiveness and attract financing to support the green transition, the EU sustainability reporting framework plays a key role in protecting the EU market and ensuring a level playing field with global counterparts.

Watch our CSDDD session from the ICCR 2025 Spring Conference: