Discussions between members of the Committee of Permanent Representatives of the Member States to the EU (‘Coreper’) on the main ‘omnibus’ text failed to make much headway on Wednesday 28 May. The Polish Presidency of the EU Council had asked them to provide political guidance on this ‘omnibus’ that simplifies the CSDDD and CSRD directives on sustainability reporting obligations and corporate due diligence (see EUROPE 13648/11).
The national delegations remain divided on the majority of the key points on which the Polish Presidency had requested clarification. This is the case for the scope of the CSDDD and CSRD directives, applicable to companies with more than 1,000 employees, according to the European Commission’s proposal (see EUROPE 13588/4). This also relates to the question of whether or not to abolish corporate civil liability at European level within the framework of the CSDDD, an issue on which the member countries still hold diametrically opposed views.
On the other hand, Member States could come closer to a compromise on the definition of the ‘negative effects’ of the recommended obligations, according to two sources, by determining the extent of a company’s due diligence obligations in its value chain.
The Polish Presidency of the EU Council had put forward a proposal in the opposite direction to that of the European Commission, namely to maintain the risk-based approach, which is not limited to the sole surveillance of operations undertaken by direct commercial partners, but which does, however, make it possible to concentrate on areas where risks are present. (Original version in French by Léa Marchal)