A coalition of NGOs has issued a formal complaint with the European Ombudsman against the European Commission (EC) arguing that the development of its sustainable finance omnibus proposal was “undemocratic, untransparent and rushed”. The omnibus looks to reduce the sustainability reporting burden for companies by modifying the Corporate Sustainability Due Diligence Directive (CSDDD), the Corporate Sustainability Reporting Directive (CSRD), and the EU’s Taxonomy Regulation. The eight NGOs – namely ClientEarth, Anti-Slavery International, Clean Clothes Campaign, European Coalition for Corporate Justice, Friends of the Earth Europe, Global Witness, Notre Affaire À Tous and T&E – allege the omnibus seeks to “significantly water down” key EU sustainability laws. “We are contesting the Commission’s rushed dismantling of three key pillars of the Green Deal – including laws meant to improve the environmental and human impacts of global trade – a process that completely disregards people and nature’s rights,” the NGOs said in a statement. “The Omnibus proposal was made without any public consultation, sidelining civil society, with a lack of evidence or environmental and social impact assessments, and with a primary focus on narrow industry interests.” The organisations added that the “reckless move” both weakens sustainability rules and “damages public trust in the EU’s democratic foundations”. Investors, businesses, civil society organisations, lawyers, members of European Parliament and sustainable finance experts have also criticised the omnibus and the EC process surrounding it. Last week, the EU published the final legal text for the stop-the-clock mechanism approved by the European Council and Parliament earlier this month, delaying elements of the CSRD and CSDDD’s application. The council also shared its current draft position on the EC’s simplification proposals under the omnibus.
