Deregulation for Business Interest?

It is one of the most controversial projects of the EU Commission: a so-called omnibus package is intended to ease reporting and due diligence obligations for companies. The plan is to water down the Corporate Sustainability Reporting Directive (CSRD), the Supply Chain Due Diligence Directive (CSDDD) and the EU Taxonomy Regulation, an instrument for promoting sustainable investment. Critics warn of comprehensive deregulation in the areas of climate protection and human rights.

However, the move is not only controversial politically. There are also suspicions that the Commission has violated its transparency and procedural rules. The EU Ombudsman's office is currently investigating the highest authority in Brussels.

Criticism of non-transparent procedure

Specifically, Ombudsman Teresa Anjinho is investigating why the Commission did not carry out an impact assessment and climate consistency check when drafting its proposal. This involves analysing whether planned draft legislation contributes to climate protection in a coherent and consistent manner. According to the Ombudsman's Office, the Commission also failed to hold public hearings. Particularly serious is the accusation that the authority spoke behind closed doors with only a handful of selected business representatives.

The procedure was triggered by a complaint from eight non-governmental organisations that sharply criticised the Commission's ‘undemocratic, non-transparent and hasty approach’. ‘The omnibus proposal was presented without the involvement of civil society, without sufficient evidence or environmental and social impact assessments, and with a primary focus on narrow industry interests,’ the statement said.

Commission rejects allegations

When asked, the Commission rejected the allegations. A spokesperson said that they had ‘reached out to stakeholders in various ways.’ For example, ‘numerous meetings with companies and their associations as well as other interest groups’ had taken place in advance. Non-governmental organisations had also participated in a key meeting in February.

However, it remains unclear who exactly was present at the meetings and what criteria were used to invite participants. It is also unclear how the positions were assessed.

The Commission justifies its action by referring to a ‘critical urgency.’ This urgency existed for companies ‘that had to report for the first time in 2026 for the 2025 financial year.’ However, the Commission has not yet presented any document ‘demonstrating the particular urgency of the matter,’ according to a letter from the Ombudsman's office to the EU authority in mid-July.

The Commission has until 15 September to respond to the Ombudsman's questions. The procedure is expected to be completed by the end of the year.

EU Council wants further concessions

The omnibus package is currently in the consultation process between the EU Council, the Commission and the Parliament. Most recently, the Council even called for further concessions regarding company size. According to this, only companies with more than 5,000 employees would be covered by the directive, instead of 1,000 as originally planned. The European Coalition for Corporate Justice (ECCJ) claims that just under 1,000 of the more than 23 million companies in the EU would be affected by the requirements.

Most recently, more than 360 organisations, including trade unions, human rights and climate protection organisations, called for the omnibus package to be withdrawn entirely.

This article was first published in German in the newspaper nd.Der Tag.