EU Ombudsman Finds Commission Ran Flawed Process in Preparing Sustainability Reporting Cuts

EU Ombudsman Teresa Anjinho has found that the European Commission committed maladministration in preparing its Omnibus initiative to reduce corporate sustainability reporting and due diligence requirements, citing a failure to follow the Commission's own Better Regulation Guidelines. Among the most significant shortcomings was the Commission allowing less than 24 hours for internal consultations between departments—conducted over a weekend—on a proposal that would significantly alter major EU legislation.

The Ombudsman launched an inquiry in May following complaints that the Commission failed to comply with its Better Regulation Guidelines when preparing the Omnibus I package, released in late February 2025, which proposed major changes to the CSRD, CSDDD, Taxonomy Regulation and Carbon Border Adjustment Mechanism. Internal consultations between Commission departments normally run for ten days, with a fast-track option of 48 hours. The report found the Commission allowed less than 24 hours for the Omnibus consultation, conducted between Friday and Saturday nights.

The Ombudsman's report also found that the Commission did not maintain clear internal records of having carried out a climate consistency assessment for the Omnibus proposal, a requirement under the European Climate Law to assess the consistency of EU and national policies with the 2050 climate neutrality goal. These procedural shortcomings do not automatically invalidate the Omnibus package, but they add a governance dimension to the political controversy surrounding the initiative and may provide grounds for further legal challenges.

The final outcome of the Omnibus legislative process is currently in trilogue between Parliament, Council and Commission, with the aim of finalising legislation by end of year. Parliament has adopted a position significantly more aggressive in cutting sustainability reporting scope than both the Commission's initial proposal and the Council's position, creating a wide negotiating gap. The Ombudsman's findings add external scrutiny to a process that has already attracted criticism from sustainable investment groups and companies that have invested significantly in CSRD and CSDDD compliance preparation.

Key figure — Internal consultation on the Omnibus proposal allowed less than 24 hours, conducted over a weekend