On Wednesday, 8 October, the ‘von der Leyen’ majority finally managed to reach an agreement on the first ‘omnibus’ text simplifying directives on due diligence (CSDDD) and corporate sustainability (CSRD).
However, the Greens/EFA refused to support the compromise that was reached, which they considered to be too right wing. Right up to the last minute, the EPP threatened the three groups on this central platform that it would vote for a series of more radical simplification amendments alongside the far right.
In order to preserve some elements in the CSDDD and the CSRD and avoid seeing them completely stripped of their substance, S&D and Renew Europe rallied behind a compromise proposal submitted by the EPP.
Members of the European Parliament’s Committee on Legal Affairs will vote on this compromise on Monday, 13 October.
Civil liability. The solution found falls in line with the European Commission’s proposal to waive corporate civil liability at the European level in the CSDDD. A rendez-vous clause was added to convince the S&D and Renew Europe groups.
The scope of the CSRD and that of the CSDDD are aligned with those defined by the EU Council: 1,000 employees and an annual turnover of €450 million for the CSRD and 5,000 employees and a turnover of €1.5 billion for the CSDDD.
As for the issue of climate transition plans for companies, a solution was found so that they would remain obligatory while reducing their impact on companies: companies will no longer be required to “do everything in their power” to achieve their climate plan’s objectives.
Nevertheless, the S&D group reluctantly gave it the green light: Lara Wolters (S&D, Dutch) – who was rapporteur on the CSDDD from 2022 to 2024 – resigned from her role as shadow rapporteur on the ‘omnibus’ simplification text.
As for the Greens/EFA, they were not able to support the final compromise. “Civil liability and the duty to implement climate transition plans are the backbone of credible sustainability legislation. By removing these, this deal empties our laws of meaning”, said Kira Peter-Hansen (Greens/EFA, Danish). Her French colleague from the same group, Marie Toussaint, lamented the line drawn by the EPP during negotiations: “The right is confirming its shameful strategy of constantly blackmailing the far right in order to get progressive forces to participate in its major operation to dismantle Europe’s social and environmental foundation”. (Original version in French by Léa Marchal)