Can the EU Ombudsman get CSRD back on track?

We have seen a lot of news following the results of the EU Omnibus recommendations back in February this year. Support from many countries who felt the reporting was too cumbersome and demanding, especially for small to medium companies. 

However, last week we saw the EU Ombudsman Teresa Anjinho announce that she has opened an inquiry into the process behind the European Commission’s Omnibus proposal, following complaints alleging that the Commission failed to meet procedural requirements in preparing the proposals.

A complaint was made by a group of organizations, including ClientEarth, Notre Affaire A Tous, Clean Clothes Campaign, European Coalition for Corporate Justice, Global Witness, Transport & Environment, Antislavery International and Friends of the Earth Europe. 

ESG Today said that the organizations argued the Commission failed to comply with the “Better Regulation Guidelines,” which set out the principles that the European Commission follows when preparing new initiatives and proposals, by not carrying out a public consultation and conducting a proper impact assessment prior to launching the Omnibus proposals.

“The organizations also complained that the Commission failed to carry out a climate consistency assessment, a requirement under the European Climate Law requiring an assessment of the consistency of EU and national policies with the EU’s 2050 climate neutrality goal.”

But will this end up having any affect on the final decisions? With large strong voiced countries like Germany leading the charge to make significant reductions, it is getting a popular vote by many countries. On the other hand there has been criticism that a lack of a clear framework will actually lead to more bureaucracy and weaken the competitiveness of businesses, as other parts of the world, such as Japan and China, shift towards tighter sustainability regulation. 

Either way I would argue that companies who proactively engage with established international standards and market trends in sustainability, are bound to emerge as leaders allowing them to secure competitive advantage, as well as consumer trust and credibility.

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