A group of major European companies, investors and industry associations published a letter to European Commission leaders, expressing concerns that the upcoming “Omnibus” package coordinating the EU’s key new sustainability reporting and due diligence laws could end up weakening the new rules, undermining business certainty and investment.

Signatories to the letter include Nestlé, Unilever, Mars, DP World, NEI Investments, Ferrero, Primark, L’Occitane, Signify, as well as the Ethical Trading Initiative and Global Network Initiative.

The letter comes as the newly appointed EU Commission follows one of its key objectives to reduce reporting and compliance burdens for companies, with Commissions President Ursula von der Leyen unveiling plans in November 2024 to introduce omnibus legislation, largely expected to coordinate the EU’s Corporate Sustainability Reporting Directive (CSRD), Corporate Sustainability Due Diligence Directive (CSDDD), and Taxonomy Regulation in order to “streamline our rules to reduce the burden on businesses,” by reducing overlaps and inconsistencies in the regulations. Von der Leyen did, however, pledge to maintain the content of the laws. More details of the omnibus package are expected to be published by the Commission in February.

While acknowledging and welcoming von der Leyen’s commitment to maintaining the content of the sustainability reporting and due diligence laws, the letter expresses concern “about the potential for others” to use the omnibus process as a way to re-open and renegotiate the legislation, noting that “companies have already invested significant resources in preparing for and meeting the new requirements.” The letter continues to urge the Commission to clarify publicly that the omnibus package “will not allow already agreed and adopted legal texts to be reopened for renegotiation.”

The letter stated:

“Investment and competitiveness are founded on policy certainty and legal predictability. The announcement that the European Commission will bring forward an “omnibus” initiative that could include revisiting existing legislation risks undermining both of these.”

The signatories noted particular concern about potentially reopening the CSDDD regulation. Setting mandatory obligations for large companies to address their negative impacts on human rights and the environment across their value chains, the CSDDD was adopted in May 2024, after a long process that ultimately required revisions in the legislation that significantly scaled back the number of companies covered by the law, and extended the timeline to its full implementation.

The letter highlighted the potential for the new laws to “drive long term resilience and value for European businesses in support of competitive advantage,” and the need for “consistency, clarity and confidence in their application,” in order to meet these goal.

The letter concluded:

“We are certain that with clear guidance and support from the European Commission, implementation of the existing rules will be both practical and workable for companies, working people, consumers, and the European economy.”