Corporate Leaders Group

The entity recommends to implement the CSDDD based on the compromise reached in March 2024.

The entity recommends the following: 'Implement the CSDDD based on the Council compromise that was reached in March 2024. The current limitation of obligations on direct business partners creates legal certainty for European businesses. An expansion of the scope and ambition level of the CSDDD should be considered over time'.

The entity is supportive of the adopted text of the CSDDD and calls for the EU Council to align with the decision.

"In the last #EPlenary of this legislature, the @Europarl_EN has at last adopted the #CSDDD, marking a significant victory for #HumanRights and the environment. We call on the @EUCouncil to align with this decision and endorse this long-awaited law!"

The entity opposes the Omnibus proposal and calls for the EU to avoid reopening and renegotiating the legislation.

"This weekend’s leak of the Omnibus proposal reveals troubling signs—not just of bending the rules, but breaking them. What started as an effort to simplify ESG regulations now risks a sweeping rollback that lowers the bar below international guidelines and even pre-ESG standards." "We must avoid a regulatory U-turn that weakens Europe’s leadership.""Our key asks: Simplification, not deregulation – Avoid reopening Level 1 legislation and focus on practical refinements at the technical level..."

The statement calls for preserving the core of the EU sustainable finance framework, including corporate due diligence, considering that regulatory simplification can be achieved without compromising the substance of the new rules.

Signatories, ‘are issuing this joint statement to emphasise the importance of preserving the core of the EU sustainable finance framework. Rules on … corporate due diligence are a key foundation for achieving the EU’s economic and sustainability goals. … In the context of the Omnibus I simplification initiative, we call attention to the investors, banks, other financial institutions and companies across our economy that support preserving the core elements of the … Corporate Sustainability Due Diligence Directive (CSDDD). … CSRD/ESRS and CSDDD are essential for achieving the EU’s wider sustainability, growth and competitiveness ambitions. … The signatories of this statement consider that regulatory simplification can be achieved without compromising on the substance of sustainability rules or their significant benefits for businesses across the EU’.

The entity cautions against deregulation of sustainability legislation, including the CSDDD.

"… Additionally, new laws on corporate sustainability reporting and due diligence promote greater climate ambition and transparency on environmental action, and create a level playing field by also applying to foreign companies active in the EU. Implementing these laws requires time, resources and effort by businesses, as well as trust that investments undertaken to get ready for the application of these laws are not in vain. Deregulation, whether through lowering environmental or social standards, reneging on international commitments, or reducing the EU’s climate ambition, threatens the stable and predictable legal framework that we depend on. We urge the European Commission to support businesses in successfully implementing existing and upcoming environmental standards — by prioritising smart implementation ...".

The entity cautions against exemptions from sustainability legislations such as the CSDDD based on sector and size

"Avoiding blanket exemptions of sectors or company sizes which can create unfair competition, harm consumer trust and further complicate supply chains. Given the proportionality principle, EU legislation often already provides longer timeframes and lighter processes for SMEs."

The statement calls for not limiting due diligence to tier-1 suppliers.

It states that, 'the most salient ... risks and impacts often lie deeper in supply chains. A risk-based approach to due diligence is helpful to companies as this allows them to focus on where the real risks are, building on their knowledge of their own supply chains. By limiting due diligence to tier 1 suppliers, the Omnibus proposal may unintentionally promote the kind of “box ticking” compliance exercises that it intends to reduce'.