The Council of the European Union (EU) has proposed key changes to previously agreed legislations that would weaken corporate accountability for abuses to people and the planet. In an analysis of the Council’s position, FIDH warns lawmakers about the serious impacts the proposed amendments would have on EU sustainability norms – especially at a time of climate, biodiversity and pollution crisis.

Brussels, 25 July 2025. On 23 June 2025, the Council positioned itself regarding the Omnibus I Package released by the European Commission earlier this year. The package aims to amend key sustainability reporting and due diligence requirements, including the Corporate Sustainability Due Diligence Directive (CSDDD). Adopted in 2024, the Directive imposes human rights, environmental and climate due diligence obligations to very large companies domiciled and/or operating in the EU.

The Commission’s package had already been met with strong criticism from civil society organisations, including FIDH, trade unions and economic actors for its potential to roll back many of the Directive’s key provisions. But the Council goes even further in stripping the CSDDD of its practical utility.

Through its proposed amendments, the Council would:

– Further limit the scope of companies covered by the Directive, when only less than 0.1 per cent of EU companies were covered by the CSDDD as adopted in 2024;

– Restrict due diligence obligations to in-scope companies and their direct business partners, while most negative impacts on human rights and the environment take place at the level of indirect business partners;

– Reduce the scope of stakeholders whom companies should meaningfully consult, thus potentially missing out on stakeholder representation that is necessary to identify risks and prevent harms along their chain of activities;

– Further weaken climate obligations right as the International Court of Justice affirmed in its advisory opinion that States have binding obligations under international law to take action against climate change.

As negotiations proceed among EU institutions, FIDH calls on legislators to reject the amendments proposed by the European Commission and the Council. They should retain the provisions of the CSDDD as adopted in 2024 in order to stand up for communities and the environment – not corporate priorities.

Read the full analysis and our statement here.