Be Human Rights Confident

We are witnessing a hijacking.

Some vocal politicians, backed by some companies, are having a field day.

They are exploiting the shared desire for simpler sustainability laws and a more competitive EU as a pretext to dismantle the sustainability frameworks, principles, and practices that have been built over years.

The things I’ve heard this week—in closed-door sessions, in side conversations, and through other fellow practitioners…

Suddenly, the narrative from some loud voices seems to be that companies were never supposed to respect human rights in the first place. That internationally recognized human rights don’t have a place in business. That it’s too much for governments to expect companies to play a role in the Paris Agreement. That competitiveness somehow means reverting to an era of unbridled capitalism.

This discourse is extremely dangerous.

And what about the ‘process’ being followed - if process it can be called? Equally dangerous.

Think of it this way. Imagine you needed heart surgery.

You’ve been preparing for it. It’s daunting, but you know it’s necessary for long-term health.

Then, the government tells you they’ll simplify the procedure. Sounds good, right? A more efficient surgery and recovery? What’s not to love.

But then you learn who will be in the room making these decision on the simpler procedure: politicians and a handful of doctors who both never believed in heart surgery in the first place.

Would you feel reassured? Wouldn’t you want experienced surgeons in the room? And what about former patients who can share what worked and what didn’t?

This is exactly what’s happening now. The “simplification” of sustainability laws is being decided without the input of those who have spent years implementing sustainability due diligence—companies, practitioners, and experts. Instead, it’s being shaped by people with entirely different agendas. And it’s happening now, before our eyes.

Companies: I am not here being alarmist. I am being realistic

The writing is on the wall unless we change who is holding the pen—and replace the erasers with many pens that actually work.

I literally heard from a business association this week that all companies were aligned - even those who had signed letters.

Do not let others take your voice for you to argue for a dismantling of the sustainability framework, in your name.

If you need messages to convey to business associations, EU Commissioners, MEPs, peers and others, here are some key points:

1. We Support Simplifying Sustainability Laws—But Not at Any Cost

Regulations can be better aligned, and expectations streamlined as businesses scale up implementation. However, simplification must not mean dilution.

2. Safeguard Key Sustainability Frameworks—No Political Renegotiation

The UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises have guided businesses for years and anchor existing sustainability laws. Many companies have already invested heavily in compliance—reopening these frameworks would create uncertainty, weaken business confidence, and stall investment in responsible value chains.

3. Sustainability is a Competitive Advantage, Not a Burden

In an era of climate change, environmental crises, and human rights risks, sustainability is integral to business success—and investors, business partners, employees, and consumers demand it. Governments worldwide are strengthening sustainability expectations. Failing to advance now will lead to fragmentation, legal uncertainty, and flawed risk assessment. When implemented effectively, these frameworks will enhance long-term resilience, competitiveness, and value creation for European businesses. The idea that they hinder competitiveness is simply misguided.

4. Build on Business Practice—Focus on Practical Implementation

Simplification should accelerate implementation, not erase progress. The Commission should focus on practical solutions, such as fast-tracking guidance on the Corporate Sustainability Due Diligence Directive (CSDDD), to enhance efficiency without undermining sustainable business practices.

5. No Need to Reopen Level 1 Legislation—Use Delegated Acts & Guidance

Simplification can happen without reopening primary legislation. Delegated Acts and Guidance offer solutions without the significant risks that come with rewriting agreed laws and diluting established frameworks. Reopening core sustainability rules before they even take effect?would set a dangerous precedent and jeopardize business certainty. Stable, consistent policies are critical for long-term investment and Europe’s leadership in the green transition.

6. Simplification Must Be Inclusive—No Rushed Decisions

Companies, experts, and practitioners—alongside the rights-holders these laws aim to protect—must be at the table shaping solutions. The Omnibus announcement, expected on 26 February, should be delayed if necessary to avoid rushed or poorly designed decisions. Sustainability requires smart, informed policymaking—not shortcuts that weaken Europe’s future.

In short: the Narrative and Process Are Yours to Shape—Or They Will Be Shaped for You

Mic drop for me.

Over to You?

PS: In honour of the importance of this moment in time, we have not proceeded with ‘business as usual’ this week. Instead, welcome to our Omnibus Special Edition!

The European Commission President Ursula von der Leyen announced in her State of the European Union Speech of 2023 that she had asked Italian Prime Minister Mario Draghi to prepare a report on the future of European Competitiveness.

The Draghi report, released in September 2024, looks at the challenges faced by the industry and companies in the Single Market. It describes why Europe will no longer be able to rely on many of the factors that have supported growth in the past, and lays out a diagnosis and recommendations to put Europe onto a different trajectory, as it pursues inclusive economic growth.

Building on the Draghi report, President von der Leyen announced on 27 November 2024 that the European Commission’s first major initiative (in its 2024 - 2029 mandate) would be to compile a Competitiveness Compass. This Compass would drive the European Commission’s work ahead.

The Competitiveness Compass for Europe was released on Wednesday 29 January 2025. You can find it here, and the accompanying factsheet here.

Human Level’s Take:

• The European Commission has decided that there are three areas of priority for the EU to maintain its competitiveness, building on the Draghi report. These are (1) closing the innovation gap, (2) a joint roadmap for decarbonisation and competitiveness, and (3) reducing excessive dependencies and increasing security.
• There are five cross-cutting activities that underpin these three areas of priority: (1) simplification by drastically reducing the regulatory and administrative burden on firms, (2) lowering barriers to the Single Market, (3) financing competitiveness, (4) promoting skills and quality jobs and (5) better coordination of policies at EU and national level.
• All the talk right now in our field is on the first cross-cutting activity: simplification. The Commission notes in the Compass that the first priority will be the first Omnibus, the first of a series of Simplification Omnibus packages. It provides that this first Omnibus will “cover a far-reaching simplification in the fields of sustainable finance reporting, sustainability due diligence and taxonomy.” Of particular note, due diligence is explicitly called out - in contrast to previous discussions that the simplification could focus on reporting and leave out the due diligence duty (the CSDDD).
• The Compass speaks about the Commission delivering “an unprecedented simplification effort”, with the first step taking place next month with the first-ever Commissioner for Implementation and Simplification coordinating the Commission’s work steering a screening of the EU laws “to identify ways to simplify, consolidate and codify legislation as needed.”
• Companies, our box above says it all. Now is the time to weigh in on this simplification process to ensure that it remains grounded in soft law frameworks, is based on company’s due diligence practice, and is based on input from meaningful engagement with experts, practitioners, companies and rights-holders. Now is not the time for a race to the bottom. Long-term competitiveness also demands it.

Read More

Lara Wolters, Member of the European Parliament (S&D, NL) and former rapporteur on corporate sustainability due diligence directive provided a keynote speech at the Frank Bold conference: Frankly Speaking on Sustainability and Competitiveness that took place on 30th January.

Human Level’s Take:

• Lara Wolters, who everyone knows as a critical player in driving forward the EU CSDDD at the European Parliament level, provides a strong, thoughtful and ‘saying it how it is’ keynote speech on the Omnibus approach.
• She expresses deep concerns about the current direction of policy changes and criticises the Omnibus process being followed by the European Commission. She makes clear that short-term politics and political opportunism has taken over. The short paragraph in the Draghi report related to competitiveness is being taken out of proportion by conservative politicians who have always disliked any form of sustainability regulation. She makes clear that perceived short-term business freedom comes at the cost of long-term sustainability and that Europe’s sustainability is not a weakness but a competitive strength.
• Lara acknowledges that implementing sustainability laws will be challenging. It will require effort from policymakers, businesses, and auditors and it will entail adjustments based on lessons learned over time. However, rolling back legislation before it has even been implemented is irrational. It creates uncertainty for companies. It sends mixed signals to businesses that have already invested in compliance. It rewards companies that delayed sustainability efforts while punishing those who took early action. Lara warns that policy flip-flopping damages business confidence and economic stability.
• She reaffirms the economic logic of sustainability, and argues that sustainability is a market reality, driven by consumer demand, investor expectations and global competitiveness. EU policymakers have spent years balancing legal certainty with business flexibility in the CSRD and CS3D. The European Commission must be criticised for its rushed approach to changing the rules with minimal consultation. This reckless deregulation would harm businesses rather than help them.
• Lara states that there is still time to turn things around and make sure the Omnibus process delivers real benefits for businesses and upholds Europe’s climate and social goals. She urges policymakers to stay true to sustainability laws and resist politically driven rollbacks. She calls for responsible decision-making. The European Commission now faces a choice: lead in sustainability and responsible business or cave to short-term populist pressures. It must collaborate with businesses, policymakers, and experts to refine—not dismantle—regulations.The world is watching, and the decisions made today will shape Europe’s economic, environmental and social future.

Read More

We opted here for reiterating some of the recent messaging from companies.

Major French Companies Urge EU Policymakers to Uphold Sustainability Laws Amid Omnibus Consultations

Excerpts from the full statement

...Sustainability regulations not only ensure a level playing field but also strengthen European sovereignty. A study by EcoVadis highlights that Western Europe leads in Corporate Sustainability Reporting. Maintaining this leadership requires firm and consistent application of the CSRD, ensuring that European standards shape global norms rather than ceding control to competing frameworks from the U.S. or Asia. Postponing or diluting these regulations would undermine European competitiveness and give strategic advantages to foreign standards...

...A moratorium or rollback risks fostering a culture of delay rather than encouraging further adoption. The phased introduction of the CSRD has been carefully designed to foster a virtuous cycle of compliance. Adding obligations to act (as introduced in the CSDDD) reinforces the progress made on obligations to disclose, ensuring sustainable practices become entrenched across supply chains...

...Claims that the CSRD, CSDDD, and Taxonomy are overly burdensome and detrimental to European competitiveness often come from stakeholders who have not engaged deeply with the texts. As sustainability officers for large and medium-sized French companies, we have studied these regulations thoroughly...

...The CSRD, CSDDD, and Taxonomy are essential tools to ensure European companies are prepared for ESG risks and can thrive in a competitive global economy. By adhering to these standards, Europe sets the stage for resilience, sovereignty, and sustainable growth. Let us continue to champion these regulations as instruments for long-term strategic success...

Major Companies and Industry Associations Urge EU Policymakers to Focus on?Practical Implementation of Sustainability Laws

Eight major companies (DP World; Ferrero; L’Occitane; Mars, Incorporated; Nestlé; Primark; Signify; and Unilever) and three industry associations (NEI Investments, Ethical Trading Initiative, and Global Network Initiative) published a letter addressed to EU policymakers on 17 January 2025, urging them to focus on delivering the practical implementation of the EU’s sustainability due diligence and reporting laws. The signatories express concern that the proposed omnibus initiative, which may revisit existing legislation, could undermine policy certainty and legal predicability. They urge EU policymakers to publicly clarify that the Omnibus initiative will not reopen already agreed and adopted legal texts for renegotiation, particularly the Corporate Sustainability Due Diligence Directive (CSDDD). Instead, they emphasise the need for clear and practical guidance to support businesses in implementing the CSDDD.

Excerpts from the full statement

...We welcome your public commitment to maintain the content of the relevant legislation and limit any changes to those that reduce redundant or overlapping reporting requirements. However, we are concerned about the potential for others to use this process to call for the legislation to be reopened for political renegotiation. Parts of the legislation are already in force, and companies have already invested significant resources in preparing for and meeting the new requirements. Predictability is critical to the ability of all actors, including businesses, to make informed decisions...

...The European Union’s due diligence and reporting rules are based on authoritative and established international sustainability due diligence standards which many companies have spent years putting into practice. Now that many of these standards have been translated into European law, and other jurisdictions are considering similar measures, we want to continue that investment...

...We stand ready to work together to harness the potential benefits of the EU’s approach to corporate due diligence and reporting, which include creating a level playing field for the reward and recognition of robust, holistic business performance. 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...

Major Players in the Cocoa and Chocolate Sector Urge EU Policymakers to Maintain the CSDDD and Provide Clear Guidance for Implementation

The Cocoa Coalition, uniting a large number of chocolate sector actors (including companies such as Ferrero; The Hershey Company; Mars Wrigley; Mondelēz International; Nestlé; and Tony’s Chocolonely, as well as non-governmental organisations, sustainability standards and other organisations), published a letter addressed to EU policymakers on 25 January 2025. In this letter, they urge EU policymakers to not undertake any modification of the adopted text of the CSDDD, nor to reopen it for renegotiation by the co-legislators. The signatories emphasise the importance of the CSDDD in making human rights and environmental due diligence the norm in global supply chains, and in driving the transformation of the cocoa and chocolate sector. They state that delays or modifications could undermine the position of those companies who are putting in place systems to respect human rights and the environment, increase compliance costs, and result in fragmented national legislation. Instead, they call for clear guidance and timely support from the EU Commission on the implementation of the CSDDD. They also call on the EU Commission to engage with relevant stakeholders, including through the public consultation, on the guidelines to support implementation of the CSDDD.

Excerpts from the full statement

...A failure to implement the CSDDD on time would undermine the position of those companies aiming to put in place systems that protect human and labour rights and the environment. It would risk the emergence of a patchwork of national legislation in EU member states, increasing compliance costs without any benefit to the sector or consumers. This would be a major setback to sustainability in global supply chains...

...Companies have over two years to prepare for implementation. We are confident that with clear guidance and timely support from the European Commission, implementation of the CSDDD provisions will be practical and workable for companies, sectors, and the European economy...

Read More

Have a question on business, human rights, climate change and just transition that you'd like us to cover? Submit it to our FAQ!?

Click the link here.