When it comes to the European due diligence and reporting legislation, simplification should not come at the expense of responsible business conduct, organizations say.
NORTHAMPTON, MA / ACCESS Newswire / March 18, 2025 / Cascale, alongside six other leading sustainability organizations-amfori, Ethical Trade Norway, ETI Sweden, Fair Labor Association, Fair Wear, and the Social & Labor Convergence Program (SLCP)-recently published a joint statement urging EU policymakers to uphold the integrity of corporate sustainability regulations amid proposed changes in the EU Omnibus Package. Collectively, these organizations bring together over 6,000 companies and affiliates dedicated to responsible supply chain practices.
The European Commission's Omnibus proposal, introduced as part of an effort to simplify corporate due diligence and reporting obligations, includes proposed changes to the Corporate Sustainability Due Diligence Directive (CS3D) and the Corporate Sustainability Reporting Directive (CSRD). The seven signatory organizations acknowledge the goal of reducing administrative burdens but highlight concerns that the proposed amendments could weaken key due diligence requirements, create legal uncertainty, and introduce challenges in enforcement.
In the joint statement, the organizations outlined key recommendations, such as:
Preserve a Proportionate and Risk-Based Approach (CS3D) - Due diligence obligations should extend beyond direct suppliers to ensure proactive risk management. A proportionate, risk-based approach aligned with internationally recognized standards helps businesses identify and mitigate risks across supply chains.
Ensure Harmonized Enforcement for Legal Certainty (CS3D) - A consistent EU-wide enforcement framework is necessary to prevent fragmented national interpretations, which could lead to regulatory uncertainty and uneven compliance requirements for businesses operating across multiple jurisdictions.
Create Stability for Businesses Committed to CSRD Reporting (CSRD) - The narrowing of the CSRD scope would exclude 80% of currently covered companies, creating legal uncertainty for businesses that have already invested in sustainability reporting and potentially misaligning reporting requirements with other EU regulations.
The joint statement emphasizes that simplification should not come at the expense of responsible business conduct. The organizations call on EU policymakers to align due diligence and reporting requirements with internationally recognized frameworks, including the UN Guiding Principles on Business and Human Rights (UNGPs) and the OECD Guidelines for Multinational Enterprises.
Read the full joint statement here: Joint statement on Omnibus proposal
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SOURCE: Cascale
View the original press release on ACCESS Newswire
