European Ombudswoman Teresa Anjinho has asked for detailed explanations on why a series of procedural steps–foreseen under internal rules–were not carried out with respect to how the European Commission prepared a legislative package to simplify EU sustainability rules for businesses.
Specifically, the Ombudswoman asked the Commission to explain why it didn’t have an impact assessment, public consultation, or climate consistency assessment, as well as why an internal consultation between the Commission’s departments on the draft proposal lasted only 24 hours.
The Ombudswoman asked the Commission to elaborate on its reasoning for the “critical urgency” of the proposal. Under the Better Regulation guidelines, derogations from requirements such as impact assessments must be thoroughly justified and well explained.
The Commission has adopted targeted “quick fix” amendments to the first set of European Sustainability Reporting Standards (ESRS) allowing companies reporting on financial year 2024 to omit information on, amongst other things, the anticipated financial effects of certain sustainability‑related risks. The “quick fix” amendment, which applies from financial year 2025, will allow them to omit that same information for financial years 2025 and 2026.
Moreover, for financial years 2025 and 2026, ‘wave one’ companies with more than 750 employees will have the same requirements for phasing in regulations as smaller companies. In April, despite signs of escalating climate change impacts, EU’s co-legislators supported the Commission’s proposal to postpone:
- by one year the deadline for member states to incorporate the requirements in their laws and the first phase of the application (covering the largest companies) of the Corporate Sustainability Due Diligence Directive (CSDDD).
- by two years the entry into application of the Corporate Sustainability Reporting Directive (CSRD) requirements for large companies that have not yet started reporting, as well as listed SMEs.
Meanwhile, the Commission said it is working on a broader revision of the European Sustainability Reporting standards (ESRS), with the aim of substantially reducing the number of data requirements, clarifying provisions and improving consistency with other pieces of legislation. It is expected that this review will be completed by financial year 2027.
The ombudswoman’s request for further information on how the sustainability rules were handled follows a request to inspect relevant documents and a meeting between representatives of the European Ombudsman’s Office and the Commission in June, during which the Commission explained how it had drawn up the legislative proposal to amend the Corporate Sustainability Reporting Directive and the Corporate Sustainability Due Diligence Directive.
Additionally, the Ombudswoman asked the Commission to explain why a further public consultation was not considered necessary when two meetings held in February 2025, and attended mainly by business and industry representatives, appear to have been the only stakeholder exchanges held in relation to the proposed amended legislation.
The Ombudswoman also asked for clarification on the length of the internal consultation between the Commission’s departments. In certain situations, such inter-departmental consultations can be reduced from the usual 10 days to a fast-track procedure of 48 hours but this one was concluded within 24 hours.
Given the importance of this inquiry and the fact that other omnibus packages are planned, the Commission has been asked to respond by 15 September 2025.
