The European Union’s Ombudsman, Teresa Anjinho, has opened a formal inquiry into the European Commission’s decision-making process behind its Omnibus I proposal, which aims to reduce corporate sustainability reporting and due diligence requirements—a move that could undermine the EU’s ESG and carbon neutral strategy goals. 

Launched in February 2025, the Omnibus package proposes scaling back the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD). Key changes include raising CSRD’s applicability threshold to companies with over 1,000 employees and €50 million in turnover—potentially exempting 80% of firms—and reducing the scope of CSDDD to direct business partners only, with less frequent due diligence checks. 

The Ombudsman’s inquiry follows complaints by a coalition of NGOs including ClientEarth, Global Witness, and Friends of the Earth Europe. These organizations argue the Commission failed to comply with its own Better Regulation Guidelines, neglecting to conduct public consultations, impact assessments, or a climate consistency review, as mandated under the European Climate Law. 

In a letter to EU Commission President Ursula von der Leyen, Ombudsman Anjinho requested detailed justifications for the lack of consultation and transparency, as well as clarification on meetings with stakeholders and the rationale behind bypassing climate impact assessments. 

The complainants praised the inquiry as a timely intervention, stating, “The Commission’s rushed rollbacks of three key components of the Green Deal—CSRD, CSDDD, and CBAM—disregard the rights of people and the planet.” 

This probe raises critical questions about the EU’s commitment to climate accountability and corporate transparency. The outcome may shape how the EU balances regulatory simplification with its ambition to lead on ESG standards and achieve its 2050 carbon neutral strategy. 

Source: 

https://www.esgtoday.com/eu-ombudsman-launches-inquiry-into-commissions-process-to-reduce-sustainability-reporting-due-diligence-requirements/