Omnibus a capitulation to corporate greed

The Commission’s simplification omnibus is, put simply, a capitulation to corporations. What has been presented yesterday (February 26^th) is all the more incomprehensible after years of record-breaking profits for companies being reported alongside widening societal inequality.

Legislation takes a long time to be developed in Europe, and while this brings frustrations during the process, it also ensures safeguards and guarantees these acts are proportionate in their use.

While we are not opposed to simplification (with professionals and managers the workers expected to carry out many reporting obligations), the sharp dismissal of long-debated policy initiatives without debate, consultation or explanation is unfathomable.

Who is this for? Workers nor the planet don’t stand to benefit. Removing 80% of companies from the scope of the Corporate Sustainability Reporting Directive (CSRD) and TU Taxonomy file is a capitulation to corporate pressure, not advancement for the good of European citizens.

To begin, the Berlaymont has presented these changes 87 days after taking office. The proposals impact the CSRD file (first proposed in 2014), the Corporate Sustainability and Due Diligence Directive (first seen in 2022) and EU Taxonomy for Sustainable Activities regulation (first proposed in 2016). Years of debate, discussion, analysis and input overridden in just over two months.

These ill-thought measures will exclude 80% of companies in Europe from the scope of CSRD and EU Taxonomy, postpone reporting requirements under the CSRD to 2028 (instead of 2026/2027) and remove the obligation to implement climate transition plans, opening the door to corporate greenwashing.

Voluntary reporting will now be asked of corporation, watering down hard-won provisions through the European Parliament. The Commission are also looking to move the goalposts on CSDD reporting – moving the requirements (for the limited number of companies concerned) from an annual basis to every five years.

Additionally, value chain reporting will be reduced versus the scope set out in the CSDD, with sector-specific standards also cut in this latest proposal.

Data gaps, which will undoubtedly be brought about by the material changes to the text, ill-judged re-adjustment of the scope and delay of implementation, will not provide investors with confidence, hinder workers’ efforts to decarbonise economies, and blindside policymakers who seek to deliver a green economy.

Including a revised definition of SMEs, added to the lack of transparency or input from civil society to this proposal, is indicative of where the Commission has sought guidance on this package.

“For the Commission to undo years of legislative work at the drop of a hat is ridiculous, and the content of the proposal shows a copy and paste approach to business interests … We will be working with unions and political groups to reject the approach outlined”

Reacting to the proposal, Eurocadres President Nayla Glaise stated:

“We know the way the wind will blow around the 13^th floor of the Berlaymont this mandate, but we expect realistic legislative proposals.

For the Commission to undo years of legislative work at the drop of a hat is ridiculous, and the content of the proposal shows a copy and paste approach to business interests.

The lack of transparency behind the alteration of critical legislation is astounding, especially given the countless hours of work that has gone into these files.

Workers and the planet cannot afford to see corporate interests valued over theirs yet again, and this approach from the Commission, so early into it’s mandate, is one that prioritises short-term profiteering over long-term prosperity.

It will take all of us to decarbonise and stimulate Europe’s economy, and an approach that is based in reality.

We will be working with unions and political groups to significantly alter the approach outlined”.