The Polish Presidency of the EU Council has asked Member States’ permanent representatives to the EU to “provide political guidance” on the “omnibus” text amending the CSDDD and CSRD directives on corporate due diligence and sustainability reporting obligations. At their meeting on Wednesday 28 May, the ambassadors will have to adopt positions on several aspects of the text in order to move work forward.
As there was no unanimity on the second compromise text (see EUROPE 13644/22) and the various positions were unclear, the Polish Presidency presented proposals on several key elements of the text in a note dated 22 May, of which Agence Europe has received a copy, on which it is asking delegations for their approval or opinion.
For example, on the issue of the scope of companies’ due diligence, the Polish Presidency goes against the European Commission and suggests returning to the basic approach of the directive, based on risk and not limited to direct commercial partners. Although it may seem more restrictive, this solution means that the activities of a direct partner for which there is no risk of negative impact are not monitored, explains the Polish Presidency.
With regard to the scope of application of the two directives, and given the divergent views of the EU27 on whether to reduce or increase the number of companies subject to the two texts, the Polish Presidency is proposing to split the difference and stick with the European Commission’s proposal. The 1000-employee threshold would therefore be maintained for both the CSRD and the CSDDD.
The transition plans that companies must adopt under the two directives also continue to pose problems. The Polish Presidency suggests keeping the Commission’s proposal, which slightly relaxes the obligation to implement the plans. To simplify matters still further, it is proposing additional alignments in the obligations of the two texts, so that the transition plans required in the CSRD and the CSDDD are really the same. Here too, the opinion of the Member States is sought.
Finally, the question of the civil liability of companies at European level in the context of the CSDDD has not been settled. “The technical-level discussion has not allowed it to gain a clear view of Member States positions, as majority of Delegations have not expressed their opinions or placed scrutiny reservations”, note the authors of the note. They are calling on the Member States to express their views on whether or not to withdraw civil liability before the CJEU.
See note: https://aeur.eu/f/h1l (Original version in French by Léa Marchal and Solenn Paulic)