First Omnibus on Sustainability

Background

The EU has built up a reputation as a global leader in sustainability, with some of the world’s most ambitious standards for corporate responsibility and climate action. Maintaining this leadership while balancing the competitiveness of businesses and driving the transition forward is crucial for securing both the EU’s high standards and its enduring influence. But as the regulatory landscape expands, concerns are growing over whether businesses, especially small and medium-sized ones, can keep up.

New rules like the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CS3D) mark major milestones in translating the EU’s Green Deal into real-world obligations. They aim to increase transparency, reduce environmental harm and improve respect for human rights across supply chains. But the pace and complexity of new legislation have raised questions about feasibility, competitiveness and the cost of compliance.

To ease the burden, the European Commission has tabled the so-called 'Omnibus proposal' aimed at simplifying reporting requirements and cutting through red tape. The idea is to streamline how companies meet sustainability standards, without watering them down. However, critics warn that simplification must not come at the expense of core protections for workers, communities and the planet.

The European Economic and Social Committee (EESC) broadly supports the move but advocates striking a careful balance. It argues that regulation should empower, not overwhelm, and stresses the importance of involving civil society groups, trade unions and business representatives in shaping the rules. The EESC also points to the need for clearer guidance, more support for SMEs, and stronger enforcement mechanisms.

Key points:

In the opinion, the EESC:

• acknowledges that small and medium-sized enterprises (SMEs) face particular challenges in implementing sustainability and transparency processes. SMEs and auditors need more assistance in order to become compliant, which is essential because protecting European values and social models is of paramount importance;
• underlines the importance of corporate due diligence in ensuring responsible business conduct and promoting sustainable value chains and calls for clear, proportionate rules and penalties, which are crucial for enabling companies to effectively comply with their obligations;
• acknowledges the Commission’s intention to narrow certain due diligence obligations to companies’ own operations, subsidiaries and direct business partners, but asks that a derogation be considered for companies with fewer than 500 employees operating in high-risk sectors, while pointing out that all companies have an obligation to respect human rights.

Read the opinion.

Additional information

Section: Single Market, Production and Consumption

Opinion number: INT/1086

Opinion type: Referral

Rapporteur: Matteo Carlo Borsani

Reference: COM(2025) 81 final - 2025/0045 (COD)

Date of adoption by section: 23/5/2025

Result of the vote: 48 in favour/28 against/4 abstentions                                                   

Date of adoption in plenary: 18/06/2025

Result of the vote: in favour/ against/ abstentions

Contacts:

Press officer: Laura Lui          

Tel.: + 32 2 546 9189

Email:  laurairena.lui@eesc.europa.eu

Administrator: Silvia Staffa

Tel.: + 32 2 546 8378

Email: Silvia.Staffa@eesc.europa.eu