Latest news with #Omnibus
Reuters
22-07-2025
- Business
- Reuters
How Europe's ambition to lead on corporate human rights ran into the sand
July 21 - Just over a year ago, the European Union approved a directive that sought to usher in a new era of human rights protection across Europe. The Corporate Sustainability Due Diligence Directive (CSDDD) was meant to give investors more visibility on the risks throughout the value chain of investee companies and make non-compliant companies accountable to member-states and to victims of human rights or environmental harm, even in their operations outside Europe. It took five years of wrangling to agree the rules on corporate due diligence and in the end, just 5,400 companies – fewer than 1% of EU firms – and 900 international corporations that do significant business in the EU were expected to be impacted. Since November last year, however, legislators have sought to unpick it, amid heavy lobbying from industry groupings, which argued that the rules meant European companies could not compete with rivals in China and the U.S., where President Donald Trump is rolling back regulation and imposing tariffs on foreign goods. In February, the European Commission introduced the first in what would be a series of Omnibus packages, focused on sustainability and investment and billed as a recalibration of rules 'in a growth-friendly manner'. The Commission said that if implemented, its Omnibus proposals would mean total savings in annual administrative costs of 6.3 billion euros and would mobilise a further 50 billion euros of public and private sector investment in support of policy priorities. The wide-ranging proposals include giving companies an extra year, to 2028, to implement the CSDDD; limiting due diligence to direct – tier one – suppliers unless there is 'plausible information' to justify deeper investigation; and doing away with a harmonised civil liabilities regime, leaving member states to establish their own mechanisms and set their own penalties. Since the first Omnibus package was published, the European Council and the EU Parliament have both made further proposals to reduce the number of companies in scope, and their reporting requirements. The European Council, for example, wants to raise the CSDDD threshold from 1,000 employees and a turnover of 450 million euros to 5,000 employees and 1.5 billion euro turnover. One of the EU Parliament's proposals is to do away with companies' obligation to draw up climate-transition plans. As part of the Omnibus, the Commission also proposed reopening the Corporate Sustainability Reporting Standard (CSRD) under which companies would have to report on implementation of climate transition plans, and the EU Taxonomy. All three work together as a framework for investors providing meaningful information on risk. Both the European Council and EU Parliament have suggested further amendments to the scope and veracity of the CSRD. The proposals reflect wide-ranging criticism from lobby groups. The French Banking Federation had argued that significant divergences between the scope and requirements of the CSDDD and CSRD risk increasing the regulatory burden and that the CSDDD put European companies at a disadvantage compared with international competition. VCI, the trade group for the German chemicals industry, said that 'huge legal uncertainty and incalculable risk' associated with civil liability would likely lead to companies withdrawing from high-risk regions and markets. Opposition has been voiced in the U.S. too, with a bill introduced in the Senate that seeks to protect U.S. firms from the reach of the due diligence law. Pierre Garrault, senior policy adviser at the European Sustainable Investment Forum (Eurosif), says 'The Omnibus initiative now modifies potentially the core substance of these rules. But that's not what businesses and investors wanted. They wanted more guidance, more clarity and less duplication.' And he suggests that the proposed changes in the Omnibus legislation could defeat the main purpose of the CSDDD because just a few companies from a few member states would be in scope. 'That creates a lot of fragmentation in the way that companies can report on sustainability matters and establish their own processes on due diligence when the main objective was to create that EU-wide standardisation, and that single European baseline.' David Ollivier de Leth, a researcher at Netherlands-based Centre for Research on Multinationals (SOMO), shares those concerns. 'The whole point of this law is that you should look at the risks, and the risks are what should guide you, not the size of the company or (its) location.' With businesses potentially now only having to address adverse human rights impacts beyond tier one suppliers if they have 'plausible information' to act on, campaigners are concerned that the Commission's changes would mean companies simply turn a blind eye to potential harms. 'I think it is fair speculation to say (that) it might even incentivise companies not to look for that plausible information because what if I get it, then I might be liable for what I've discovered,' suggests Marion Lupin, policy officer at the European Coalition for Corporate Justice. While a big enough injustice might attract the attention of NGOs, she adds, 'you're very much outsourcing the risk-management to other stakeholders, whose job is not to survey value chains of multinationals. It's very problematic.' Another Omnibus amendment restricts due diligence further by limiting the information corporations can ask for from suppliers with fewer than 500 employees, the so-called VSME standard, a voluntary reporting standard for small- and medium-sized companies developed by the Commission's technical adviser on sustainability reporting. VSME allows companies to assert 'we don't know (about human rights risks in our supply chain), because we're not allowed to ask,' says SOMO's Ollivier de Leth. Ollivier de Leth says SOMO's study of seven major EU supermarket supply chains demonstrates just how much the tier one limitation guts the purpose of the CSDDD. It found that most firms' tier one suppliers were based in EU countries deemed to be at low risk of human rights violations. That is in contrast with the large proportion of more distant suppliers, which originate in countries with a high risk of human rights violations, such as deforestation and land rights abuses found in meat and soy chains, or child labour in cocoa supply chains. Campaigners are also concerned about the demise of harmonised civil liability, which would have ensured that the conditions under which a company can be held liable are the same in every member state. Instead, a hotch-potch of national rules potentially creates a legal minefield, argues the ECCJ's Lupin. Johannes Blankenbach, senior EU researcher at the Business and Human Rights Resource Centre, agrees: 'Harmonised civil liability is very important for remedy, and also as an incentive for a true level playing field among companies of quality due diligence beyond just ticking boxes.' Investing in thorough due diligence also protects companies themselves, he adds. Before the advent of the CSDDD, only a few European countries had implemented due diligence obligations based on international standards framed by the OECD and U.N. Guiding Principles. French law, for example, requires due diligence across the full value chain but is short on detail that can leave it open to interpretation in the courts, say campaigners. Germany's legislation, meanwhile, focuses only on tier one suppliers. That limit followed extensive corporate lobbying, but Blankenbach argues that the way companies have chosen to apply Germany's legislation so far has created the very bureaucracy they sought to avoid, with 'firms performing indiscriminate compliance exercises with all their tier one suppliers, sometimes flooding them with relatively meaningless surveys'. 'It's a bitter irony to see that tier one focus replicated in the Omnibus,' he adds. In April, legal charity ClientEarth and seven other campaign groups filed a complaint with the European Ombudsman, the EU's independent watchdog, accusing the Commission of 'maladministration' for bypassing proper impact assessment and excluding broad public participation in preparing the Omnibus package. Read more They also accused the Commission of consulting industry lobbyists in closed-door meetings before publishing its proposals. In July, the EU Ombudsman wrote to the Commission asking it to justify its decision-making process, and giving it until September to respond. A Commission spokesperson told journalists that swift changes had been needed since the reporting requirements already applied to some companies. "Businesses and member states urgently needed legal certainty to comply with the sustainability framework," the spokesperson said. Some companies and investors are pushing back against the Omnibus. Over 200 have so far signed an open letter stating that 'regulatory simplification can be achieved without compromising on the substance of sustainability rules or their significant benefits for businesses across the EU'. They include EDF, Vattenfall, Ingka Group and the Inter IKEA group, as well as pensions groups, insurers and asset managers – many of whom have already begun implementing and preparing for the due diligence legislation. A spokesperson for Inter IKEA Group and Ingka Group told The Ethical Corporation that it's important the CSDDD doesn't 'turn into a compliance without impact'. 'We advocate for maintaining a risk-based approach beyond our direct suppliers and ensuring that companies can legally access the information needed to identify, prevent and mitigate adverse impacts throughout their value chains.' How much weight those arguments have will become clear this autumn when the European Parliament finalises its position and negotiations between the Commission, European Council and EU Parliament begin. Businesses and investors who are preparing for the new legislation urgently want clarity. Will it come at the expense of rights holders?
BBC News
18-07-2025
- Business
- BBC News
Channel Islands Coop must 'move on' after new homes plan stalled
The boss of Channel Islands Coop says the firm has "got to move on", after its long-running plans to redevelop a derelict site in Guernsey with more than 300 homes did not executive Mark Cox said Coop was happy to "draw a successful conclusion" to the Leale's Yard site, on The Bridge, St Sampson, after agreeing to sell it to the States for £4.5m after owning it for nearly 30 retailers said they were "elated" and "hopeful".Mr Cox said Coop's final attempt at developing the site, which included plans for 338 houses, a multi-storey car park and a supermarket, was not meant to be. It comes after the States pulled out of a £35m deal to support Coop and developer Omnibus. Mr Cox said: "I guess there's a little bit of disappointment that we haven't been able to deliver our plans, but equally we've got to recognise that we're retailers. "We've got to move on - the States have a need for housing and as a coop we've always wanted to support that need."Being able to pass this over to the government to enable them to take it on and unleash the potential for the site and other sites that they own in Guernsey is really positive." 'Holding back' land The States of Guernsey announced plans to buy Leale's Yard on Wednesday. Earlier this year, it pulled out of a deal to spend about £35m on the project to support the Coop and developer Omnibus with the Cox said the company had subsequently "not been able to deliver the scheme".He said: "I think from a core point of view, we've got to take a long hard look at that and what we're doing is holding back a piece of land that could be developed out of much-needed housing in Guernsey. "If we're not able to do that, then we've got to find somebody that is able to do that." Mr Cox said the money from the purchase would be used to invest into its supermarket on Nocq Road in St said: "What it now gives us is certainty for our members and our colleagues that we'll be reinvesting in Nocq Road, improving that store for the benefit of those members."We'll expect to see some exciting plans coming out for the future of Nocq Road."
BBC News
16-07-2025
- Business
- BBC News
States to buy Leale's Yard for £4.5m, Policy & Resources says
The States of Guernsey is set to buy the Leale's Yard site on The Bridge for £4.5m, the island's top political committee has this year, the States pulled out of a deal to spend about £35m on the project to support the Channel Islands Co-Op and developer Omnibus with the scheme. Omnibus had planned to build more than 300 new homes on the site, with outline planning permission for the project granted in her first speech to the States, Policy and Resources President Lindsay de Sausmarez said: "This site is essential in terms of its strategic importance." De Sausmarez stressed the importance of an improved traffic network in the area to facilitate the building of new housing. "The first priority is to improve the transport network in the area, both around and through the site, as that's crucial for its long-term success in addressing the traffic impact," she said."We are very keen to deliver the best mix of housing that the island needs, alongside other aspects that will support the regeneration of The Bridge, and won't waste any time in moving this forward." Channel Islands Co-Op chief executive Marc Cox welcomed the decision."We are delighted to have reached an agreement with the States of Guernsey for them to purchase the substantial part of the Leale's Yard site," he said. "This agreement will enable the Co-op to focus on our core business, free of the distractions that a complex property development like Leale's Yard entails."The agreement will also see the States free to progress the delivery of much-needed new homes and employment opportunities for the island of Guernsey."
GMA Network
03-07-2025
- Politics
- GMA Network
DepEd: Measures in place to prevent 'learning loss' due to class suspensions
The Department of Education (DepEd) has rolled out a comprehensive set of initiatives designed to make the Philippine education system more "flexible and disaster-ready." This, as DepEd prepares for possible class suspensions amid the rainy season. DepEd Secretary Sonny Angara said that while safety should be a top priority, learning continuity must be part of every suspension decision. Below are key programs and reforms from DepEd: Deployable learning continuity packages Durable and mobile modular classrooms will replace temporary learning spaces in disaster-hit areas. A pilot rollout in high-risk zones is slated for August 2025. LIGTAS AI tool under E-CAIR An AI-powered system that predicts geohazard risks, enabling schools to make better contingency plans. Upgrades to the system are expected by the third quarter of 2025. Revised suspensions as guidelines (Released December 2024) These empower school heads to: Declare localized or granular suspensions even without LGU declarations. Coordinate with LGUs for class suspensions based on real-time conditions such as flooding or earthquakes. Read the official guidelines here. Learning and service continuity plans (LSCPs) All schools are required to have LSCPs, which include: Use of Alternative Delivery Modes (ADMs) like self-learning modules and online platforms. Secure storage protocols for learning materials and devices. Teacher training for quick transitions during disruptions. Omnibus flexible learning policy (Releasing July 15) This new framework institutionalizes flexible learning across grade levels and creates one-stop-shops for schools to access support services, materials, and guidance. Tablet distribution for ADM learners DepEd is actively distributing tablets to learners in disaster-prone areas, enabling continuous learning when physical attendance isn't possible. Stronger LGU engagement The department has issued letters to the Department of the Interior and Local Government (DILG), the Union of Local Authorities of the Philippines (ULAP), and other local leagues to encourage alignment with the new suspension protocols. 'Learning loss' Previously, class suspensions were automatic—like the cancellation of kindergarten classes under Signal No. 1. But under new protocols introduced in December 2024, schools and local governments now have more discretion, allowing suspensions to be tailored to real-time conditions rather than blanket rules. Angara has reminded school officials and local governments to be prudent in declaring class suspensions, emphasizing the department's priority to avoid unnecessary learning gaps. 'We wish to minimize learning loss, so long as ligtas ang mga bata at titser and staff,' Angara told GMA News Online via Viber message. (We wish to minimize learning loss, so long as the safety of students, teachers, and staff is ensured.) 'So sana 'wag basta-basta lang mag-declare ng cancellations sa baba unless talagang hirap na hirap pumasok,' he added. (We hope suspensions won't be declared casually at the ground level unless it's truly difficult for students and staff to attend school.) 'Sa mga kasong ganun, may substitute naman kami,' he noted. (In such cases, we have alternatives in place.) —VAL, GMA Integrated News
Miami Herald
24-06-2025
- Business
- Miami Herald
EU endorses proposal for environmental deregulation
June 24 (UPI) -- The European Union is set to amend its current ethical supply chain rules after its ambassadors endorsed a simplification bill from the Council of the EU. "Today we delivered on our promise to simplify EU laws," said EU Minister of Poland Adam Szlapka in a press release Monday. "We are taking a decisive step towards our common goal to create a more favorable business environment to help our companies grow, innovate, and create quality jobs." The bill would impact current environmental laws with the intention of shrinking the regulatory pressures on businesses in order to juice up the EU's economy. Two such green rules are the EU's Corporate Sustainability Reporting Directive and the Corporate Sustainability Due Diligence Directive. These currently insist that all the companies that do business in the EU and have at least 1,000 employees report their environmental effects. The bill would increase the employee threshold that forces a company to comply up to 5,000 employees. Currently, the CSRD and CSDDD also require companies that make at least approximately $522 million in net turnover to monitor their supply chains for environmental and human rights violations. The bill would raise that starting bar to about $1.7 billion. The release said the regulations were being loosened based on the concept that larger companies "are best equipped to absorb the costs and burdens of due diligence processes." The bill would also limit the obligation required for companies to adopt a transition plan to deal with climate change. It would give the EU Council authority to advise companies on how to create and execute such plans. The Council could then give companies up to two years to implement those plans in order to "further reduce burdens and provide companies with sufficient time for adequate preparations." If adopted, less than 1,000 companies would be affected by the CSRD, down from the nearly 50,000 companies that currently must comply. However, should Omnibus pass, there could be legal challenges. The nonprofit ClientEarth Europe environmental organization posted to X Tuesday that "The Omnibus is fueling legal uncertainty and might breach the law too." "A new legal analysis warns of the risk of future legal challenges if the Omnibus is passed into law," the post continued. "The agreement reached by the EU Council last night heightens these risks by further undermining the [CSDDD]. Copyright 2025 UPI News Corporation. All Rights Reserved.
