Reducing the scope of the EU’s Omnibus initiative would deliver ‘another disappointing blow to climate and nature, human rights, and long-term business interests, the WWF has said.
The organisation was commenting following the publication of MEP Jörgen Warborn’s draft report on the EU’s Simplification Omnibus I, which proposes much sharper cuts to the reporting obligations placed on firms, as well as the number of companies that they apply to.
European People’s Party (EPP) MEP Warborn’s report proposes raising thresholds under the Corporate Sustainability Reporting Directive (CSRD) to only include companies with over 3,000 employees and €450 million in turnover.
According to the WWF, this would ‘effectively dismantle’ the reporting ecosystem required for ESG risk assessment, resulting in less clarity and higher risks.
‘The ultimate goal’
“It seems like the ultimate goal is to render Europe’s flagship environmental laws irrelevant, taking the EU decades backwards,” commented Thibault Girardot, sustainable finance policy officer at WWF EU.
“This proposal would undo legal frameworks designed to serve nature and people, offer a level playing field for corporations, and enable a resilient future for all. If the EU really wants to support businesses and act in the best interests of people and nature, it must stand by the carefully crafted laws on corporate sustainability.”
Sustainability data
The EPP‘s report also suggests removing businesses’ ability to request sustainability data from business partners (with fewer than 3,000 employees), replacing this with a voluntary, entry-level questionnaire.
‘This would severely sabotage access to information that investors, business partners, and regulators rely on,’ the WWF said.
It added that the EPP’s proposal to remove Article 22 of the Corporate Sustainability Due Diligence Directive (CSDDD) would potentially expose companies to inconsistent litigation across EU member states.
‘It is imperative that the EU acts swiftly to prevent the damage that such changes would inevitably cause to Europe’s corporate sustainability framework, and once again prioritise the prosperity and resilience of its nature, its people, and its economy,’ the WWF said. Read more here.
