Due Diligence: EU Commission continues push to “simplify” laws

The EU Parliament’s rapporteur supports scaling back due diligence laws, while NGOs challenge the Commission’s process as undemocratic and influenced by corporate interests

The Key Points: The European Parliament’s new rapporteur for the Corporate Sustainability Due Diligence Directive supports reducing the law’s requirements to ease business burdens. The Commission plans to consolidate due diligence laws into a single “Omnibus” proposal with a narrower scope, but NGOs are challenging the process as undemocratic and influenced by corporate interests.

Why This Matters: The direction of EU due diligence law will affect compliance costs, reporting obligations, and corporate responsibility standards. The challenge by NGOs could influence the debate, even if it cannot stop the legislative process.

What Might Happen Next:  The European Ombudsman may open an inquiry into the Commission’s process, but this is unlikely to halt the legislative push. Expect continued debate over the scope and ambition of the new rules.

What You Should Be Doing:  Stay informed on the evolution of the “Omnibus” proposal. Assess your company’s current due diligence processes and prepare for possible changes in compliance requirements.

• European Coalition for Corporate Justice press release

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