A draft opinion from the European Parliament’s Committee on Employment and Social Affairs (EMPL) has formally opposed proposed reductions to EU sustainability reporting and due diligence rules, intensifying debate over the Commission’s Omnibus Simplification Package. The package aims to ease Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD) requirements—key pillars of the EU’s ESG framework and carbon neutral strategy. 

Submitted by MEP Li Andersson, the draft opinion criticizes the Commission’s rollback efforts, arguing they create legal uncertainty and undercut progress made since 2020 in aligning businesses with climate and social accountability. Andersson contends the Omnibus changes jeopardize access to high-quality, comparable ESG data, which is vital for investors and stakeholders. 

Among 49 proposed amendments, 40 seek to delete the Commission’s revisions, preserving original thresholds and timelines for corporate reporting. Key amendments challenge the Commission’s justification for deregulation, highlighting the lack of impact assessments and public consultation, an issue also under investigation by the EU Ombudsman. 

Notably, Amendment 42 calls for support mechanisms for SMEs rather than exemption, proposing financial and training aid to help smaller firms meet sustainability expectations in the value chain—striking a balance between burden reduction and accountability. 

This opinion adds pressure as multiple parliamentary committees, including ECON and ENVI, have submitted nearly 1,000 amendments to the Omnibus. The final EMPL vote is set for June 4, with Parliament expected to vote on the full proposal in October. Final negotiations between the Commission, Council, and Parliament are due in December. 

As the EU refines its ESG and carbon neutral strategy, the outcome of this legislative clash will define how far Europe is willing to go in maintaining corporate sustainability leadership amid rising political and economic pressures. 

Source: 

https://www.forbes.com/sites/jonmcgowan/2025/05/31/eu-employment-committee-draft-opinion-opposes-reductions-in-sustainability-reporting/