The European Union’s proposed revision of ESG regulations, particularly the Corporate Sustainability Due Diligence Directive (CSDDD), could trigger a surge in litigation, warn over 30 leading legal scholars from institutions such as Oxford and Cambridge. Their joint letter to the European Parliament argues that the plan to ease corporate sustainability obligations threatens both the bloc’s climate law compliance and broader ESG integrity. 

The CSDDD, enacted in 2023, mandates that companies develop and implement net zero transition plans aligned with the EU’s 2050 carbon neutrality targets. However, the European Commission’s latest omnibus bill, introduced in February 2025, appears to drop the requirement for companies to implement these transition plans—prompting legal experts to describe the move as a “retrograde step.” 

Thom Wetzer, director of the Oxford Sustainable Law Programme, stated that without mandatory implementation, the EU risks falling short of its carbon reduction goals. The potential softening of obligations also opens the door for climate-related legal action at the national level, with NGOs and advocacy groups preparing lawsuits to challenge the weakened enforcement mechanisms. 

In defense, the European Commission said the revised language seeks to harmonize ESG rules across existing frameworks, asserting that transition plans will still be subject to supervision and actionable measures. Yet this has done little to assuage concerns from both human rights activists and climate advocates, who fear that a diluted directive could weaken corporate accountability on ESG issues. 

Political pressure to reduce regulatory burdens has come from major EU economies, including France and Germany, and from international actors like the U.S. Chamber of Commerce, citing concerns over global competitiveness. With negotiations ongoing, a final CSDDD revision is not expected before year-end. 

As Europe balances ESG goals with economic pragmatism, the risk of legal disputes around carbon neutrality and due diligence is rising—placing the EU at the center of global climate litigation risk. 

Fuentes: 

https://www.bloomberg.com/news/articles/2025-05-09/legal-scholars-reveal-risks-in-eu-plan-to-water-down-esg-rules  

https://www.insurancejournal.com/news/international/2025/05/09/823151.htm