There’s been a little bit of backlash on LinkedIn recently. Some commentators are criticizing sustainability professionals for dedicating too much time analyzing the European Commission’s Omnibus proposal and what it would mean for companies, to the detriment of ‘doing the work.’
But this perspective misses the bigger picture.
1. Good law matters
The outcome of the EU Corporate Sustainability Due Diligence Directive (CSDDD) and the Corporate Sustainability Reporting Directive (CSRD) will be pivotal for responsible business practices in the years ahead.
While there are other driving forces pushing companies toward sustainability—such as investor pressure to identify and mitigate risks, other governments passing international standards-based policies and laws, and soft law accountability mechanisms—the law carries weight like none other.
The law has teeth. It shapes behaviours and sets norms of conduct. For most companies, the law has been, and will continue to be, a key driver in shaping business conduct.
Get it right, and you create meaningful action, a powerful wave of change that drives responsible business practices and positive societal impact.
Get it wrong, and not only do we fail to drive the change we need: we actively undermine it. Misguided legislation creates confusion, introduces inefficiencies, and dilutes the effectiveness of responsible business efforts, costing both companies and broader society.
2. We all have a role to play now in responsible lawmaking
The legislative process is unfolding now. The European Commission has just submitted its proposals to the European Parliament and the Council. This is the moment for businesses and due diligence practitioners to influence the direction of the legislation and ensure the final text reflects practical, meaningful standards.
Once the text is approved, it will be too late to propose changes, and companies will be bound by the decisions made by policymakers.
Key stakeholders to engage with this month include members of the European Parliament, particularly those from the European People's Party (EPP) (e.g., a submission to Axel Voss, see here) and Renew Europe, and Member States.
3. We can’t afford to get it wrong
Businesses are already stretched thin. There’s constant pressure to stay competitive, allocate resources wisely, and navigate the complexity of global markets. Creating a regulatory process that adds fragmentation, duplication, and confusion would only further stretch these already limited resources.
We cannot afford to let companies operate from a position of uncertainty or scramble to meet conflicting demands. Instead, we need clear, actionable laws that help businesses stay ahead of the curve, not on the back foot.
The world around us is increasingly unstable. Democracies are backsliding, autocracies are rising, and civil liberties are under threat. Accelerating climate change, extreme weather events, growing inequality, and an increase in migration all add pressure to the system. In such a volatile environment, companies cannot afford weaker due diligence practices.
Conclusion: We're not overreacting
The urgency of the situation couldn’t be clearer. The legislative process around the Omnibus proposal can make or break the future of responsible business as we know it. We need to ensure that we advocate for strong, practical, and forward-thinking laws - while they can still be shaped.
Now is the time to get it right.
