Unions Oppose EU's Attempt to Loosen Regulations on Business Sustainability Standards
The European Union (EU) is currently embroiled in a contentious debate over the Omnibus Directive Package I and II, which propose amendments to corporate sustainability laws. These changes are perceived to weaken accountability and reduce the stringency of sustainability reporting and due diligence requirements, causing alarm among major trade unions and some political groups.
The unions, including IndustriAll Europe and industriALL Global Union, are opposed to these changes, fearing they dilute the original intent of EU sustainability frameworks such as the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD). They argue that weakening these directives could undermine the effectiveness of EU climate and social goals.
Key points of contention include the simplification and reduction of administrative burdens proposed for Small and Medium-sized Enterprises (SMEs) through raised reporting thresholds, exemptions for subsidiaries, and the removal of mandatory climate transition plans. Critics argue that these changes lower the ambition of sustainability frameworks designed to drive corporate accountability and the European Green Deal.
The European Parliament's International Trade Committee has also proposed amendments that introduce a risk-based approach for assessing adverse impacts and more flexibility in suspending harmful business relationships. Some view this shift as weakening responsibility.
Trade unions and left-leaning political groups, such as the Socialists & Democrats, Renew, and Greens, strongly oppose the draft amendments, viewing them as a rollback that threatens workers’ rights, social justice, and environmental protection. They argue that the Omnibus proposals undermine enforcement mechanisms and the EU’s broader sustainability objectives.
On the other hand, some business groups, like Austria's Federal Economic Chamber (WKO), welcome efforts to limit reporting requirements for SMEs to avoid excessive administrative burdens and improve market acceptance. They call for simplifications like the Voluntary SME standard to reduce the reporting load without compromising essential data.
The European Commission has made “quick fix” amendments to phase in reporting requirements more gradually for Wave 1 reporters under CSRD, allowing omission of certain disclosures on biodiversity, workers in the value chain, and affected communities for 2025 and 2026. While easing immediate burdens, this extension has added to the debate over how fast and how stringent sustainability reporting should be.
The union opposition to weakening the CSRD and CSDDD comes at a critical time for global labour rights. These unions represent millions of workers in manufacturing, energy, and mining industries. The battle over these directives represents a broader struggle over the balance between corporate competitiveness and social responsibility in an increasingly interconnected global economy.
Union leaders argue that weakening these directives would discourage businesses that are already implementing these standards through workplace dialogue and other established mechanisms. The unions have issued a letter warning against weakening corporate human rights due diligence rules and are demanding that European policymakers abandon plans to weaken the two directives and instead strengthen them to ensure robust protection of workers and communities everywhere. The dispute remains active in the European Parliament and will influence the final legislative outcome expected after late 2025 trilogue negotiations.
Trade unions, such as IndustriAll Europe and industriALL Global Union, are vocal opponents of the proposed changes to the Omnibus Directive Package I and II, arguing that they could undermine the effectiveness of EU climate and social goals through weakening accountability and reducing the stringency of sustainability reporting and due diligence requirements.
In the ongoing debate over the Omnibus Directives, trade unions and left-leaning political groups are pushing for stronger enforcement mechanisms and the maintenance of the original intent of EU sustainability frameworks like the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD), regarding them as crucial for workers' rights, social justice, and environmental protection.
