European NHRIs raise concerns in relation to the EU’s Omnibus proposal
At the end of February, the European Commission plans to present a so-called “Omnibus” proposal revisiting certain aspects of new EU regulations encouraging responsible business conduct and sustainable development. According to EU President Ursula von der Leyen, the aim of the new proposal is to reduce administrative burdens by addressing redundant or overlapping reporting requirements. The Omnibus proposal will focus on the Corporate Sustainability Reporting Directive (CSRD), the Taxonomy Regulation, and the Corporate Sustainability Due Diligence Directive (CSDDD).
In an open letter to the European Commission, the Greek National Commission for Human Rights (GNCHR), together with nine other National Human Rights Insitutions (NHRIs) from across Europe, recognizes the need to enhance policy coherence, consistency, and clarity in sustainability-related legal requirements for companies. However, they stress that the announcement of the Omnibus proposal has created uncertainty for a broad range of stakeholders:
“We are concerned that this process could jeopardize the broader contents of these laws, the momentum around corporate sustainability and sustainable finance in the EU, and unintentionally disadvantage companies that have already invested significantly in anticipation of legal requirements,” the letter states.
NHRIs should be consulted
As National Human Rights Institutions (NHRIs)—independent and impartial state bodies with expertise in human rights in their respective jurisdictions—the signatories of the letter have been actively engaged in the development of the CSRD, CSDDD, and the EU taxonomy. They have welcomed the EU’s leadership in addressing the existential challenges of climate change and in investing in an economy that works for people:
“The EU’s policy and regulatory actions to address pressing sustainability issues are a long-awaited response to the legitimate expectations of rightsholders and other stakeholders for enhanced respect for human rights and the environment in business activities. These actions reflect the results of public consultations with all stakeholders.”
These laws are already an agreed political compromise that has passed through the legal process in the EU. Most EU Member States have already transposed the requirements of the CSRD into their national laws, and processes for the transposition of the CSDDD are ongoing. Meanwhile, companies subject to the CSRD have already invested considerable resources into meeting the new reporting requirements.
“We call for the integrity of the instruments to be respected and for the European Commission to focus its efforts on facilitating effective implementation. Priority should now be given to developing guidance and other accompanying measures and guidelines by the European Commission,” the signatories write, calling for NHRIs to be actively consulted in this process.
Read the open letter of the 10 NHRIs here
Signatories:
The Belgian Federal Institute for Human Rights
The Consultative Commission for Human Rights of Luxembourg
The Danish Institute for Human Rights
The Finnish Human Rights Centre
The French National Consultative Commission for Human Rights
The German Institute for Human Rights
The Greek National Commission for Human Rights
The Norwegian Institute for Human Rights