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Ombudsman Investigation Into EU Sustainability Reporting Bill Moves Forward
Ombudsman Investigation Into EU Sustainability Reporting Bill Moves Forward

Forbes

time24-07-2025

  • Politics
  • Forbes

Ombudsman Investigation Into EU Sustainability Reporting Bill Moves Forward

Teresa Anjinho In April, a group of climate change organizations filed a complaint with the European Ombudsman asserting that the European Commission failed to follow the proper process in drafting legislation to reduce sustainability reporting requirements. To the excitement of sustainability activists, on May 21, the Ombudswoman announced she was opening an official investigation. That investigation has now moved forward, with the official submission of questions to the Commission. However, given the timeline and limited authority of the Ombudsman, the inquiry will have little impact on the final outcome. In November, the new leadership of the European Commission proposed the Omnibus Simplification Package to reduce the scope of the Corporate Sustainability Reporting Directive and the Corporate Sustainability Due Diligence Directive. The proposal by the Commission was negotiated behind closed doors and largely held secret until the final draft was approved. The Commission's proposal was then sent to the Council and the Parliament. Each body will debate their respective positions, before the three enter into a trilogue to come to a final proposal. While the normal process of negotiating a new directive can takes years, it is expected that the final package will be adopted in the fall. The accelerated timeline has concerned some sustainability advocates who believe reforms deserve more study and public debate. In an effort to bring to thwart the reforms, in April, a complaint was filed to the European Ombudsman by 'eight civil society organizations': ClientEarth, Notre Affaire à Tous, Clean Clothes Campaign, European Coalition for Corporate Justice, Global Witness, Transport & Environment, Antislavery International and Friends of the Earth Europe. On May 21, Teresa Anjinho, the European Ombudswoman, announced an official inquiry into the complaint. The case is titled 'The European Commission's failure to comply with its 'Better regulation guidelines' in preparing a legislative proposal on corporate sustainability reporting and due diligence.' On June 16, the Ombudsman's office met with Commission staff to discuss the inquiry. Following the meeting, the Ombudsman announced she believed written responses were necessary. There are four main topics the Ombudsman wants addressed: the impact assessment, public consultation, the climate consistency assessment, and the Inter-Service Consultation. Under the EU's Better Regulation Guidelines, new legislation is required to go through a an assessment to determine what economic, environmental or social impacts the proposal may have. The Commission did not conduct an impact assessment for the simplification proposal. Addressing the absence of an impact assessment, the ombudsman stated, "While the legislative proposal in question would, in principle, have required a full-fledged impact assessment, the Commission did not conduct one, preparing instead an analytical document, in the form of a staff working document." "In its explanatory memorandum, the Commission justified the 'critical urgency' of the proposal, and the related derogation from the impact assessment requirement, with the need to maintain the competitiveness of EU businesses… However, the Commission did not indicate any sudden or unexpected event that would justify the urgency." Similarly, new proposals are required to go through a public consultation to allow stakeholders the opportunity to provide input. The Commission held meetings in February with a selected group of stakeholders, but did not open it to broader input. Addressing the absence of a public consultation, the Ombudsman stated. 'I understand that in this case the Commission considered that a public consultation was not required… nor was it feasible…."It is not clear how the stakeholder exchanges referred to in the explanatory memorandum meant that a public consultation would not have added new information, in particular considering that many stakeholders that could have contributed otherwise were not invited to participate in the February 2025 meetings." Addressing the absence of a climate consistency assessment, the Ombudsman stated, "in accordance with the European Climate Law, the Commission is required to conduct a climate consistency assessment of any draft measure or legislative proposal 'and include that assessment in any impact assessment accompanying these measures or proposals, and make the result of that assessment publicly available at the time of adoption'… It appears therefore that the Commission did not carry out a climate consistency assessment before adopting the legislative proposal in question, although the European Climate Law does not foresee any exemptions from conducting such an assessment." Finally, addressing the lack of the Inter-Service Consultation (ISC), the ombudsman stated the "Commission's rules of procedure foresee a formal ISC of 'the services with legitimate interest on account of the nature, subject-matter or impact of the draft act'. Normally, the services consulted in an ISC are given ten working days to review the proposal and to reply. 'In exceptional cases, and on duly justified grounds of urgency', the rules of procedure allow for the possibility of a Fast-Track ISC with a shortened time frame of 48 hours… For the proposal at hand, the ISC was concluded within 24 hours.' While the Ombudsman has the authority to conduct the investigation and produce a final report, authority to enforce recommendations is limited. 'The Ombudsman may be able to solve your problem simply by informing the institution concerned. If more is needed, every effort is made to reach an amicable solution that will put matters right. Should this fail, the Ombudsman can make recommendations to the institution. If these are not accepted, the Ombudsman can draw up a special report to the European Parliament, which must then take appropriate action.' However, once the report is sent to the Parliament, it becomes a political process. The report is sent to a committee that decides if further action is necessary. That committee can submit a motion for a resolution by the Parliament. That process can take months. Even if the Ombudsman finds the process was was flawed, the report will have minimal impact on the Omnibus package. The Commission was given a deadline of September 15 to respond to the questions. Following the Ombudsman's procedures, the final report may not be issued until the end of the year, after the reforms to sustainability reporting have been approved. The focus of the Ombudsman appears to be on future Omnibus proposals and ensuring the process is followed moving forward.

Watchdog demands EU explain speed of proposals to cut green rules
Watchdog demands EU explain speed of proposals to cut green rules

Reuters

time16-07-2025

  • Business
  • Reuters

Watchdog demands EU explain speed of proposals to cut green rules

BRUSSELS, July 15 (Reuters) - The EU's Ombudsman on Tuesday demanded the European Commission explain why it fast-tracked proposals to curb sustainability laws, in response to a complaint by campaigners accusing Brussels of weakening the rules without consulting the public. In February, the Commission proposed legal changes that would exempt thousands of smaller European businesses from European Union sustainability reporting rules - a move designed to simplify regulation for industries struggling to compete with rivals in China and the U.S., where President Donald Trump is rolling back regulation. The EU's Ombudsman has demanded the Commission explain why it did not conduct a full analysis of the impact of these proposals, consult the public on the changes, or assess whether the proposals were in line with Europe's climate change commitments. When proposing new EU laws, the Commission usually conducts an impact assessment to examine their effect. It can skip this when a law is an urgent response to a crisis and did not carry out an assessment in the proposals to simplify the green reporting rules. "Based on the material made available to date, the Commission does not seem to have adequately justified derogating from its rules in this case," Ombudsman Teresa Anjinho said in a letter to the Commission, published on Tuesday. "The Commission did not indicate any sudden or unexpected event that would justify the urgency," she said. Anjinho also noted that the Commission had given its internal departments just 24 hours to assess the plans, starting on a Friday evening, rather than the standard 10-day internal consultation. A Commission spokesperson said it would respond to the questions, and that swift changes had been needed since the reporting requirements applied to some companies already this year. "Businesses and member states urgently needed legal certainty to comply with the sustainability framework," the spokesperson told a regular press briefing. The European Ombudsman investigates cases of maladministration in EU institutions. The Commission has until September 15 to respond to the questions.

Ombudswoman asks EU institutions for more transparency amid complaints
Ombudswoman asks EU institutions for more transparency amid complaints

Euronews

time27-06-2025

  • Politics
  • Euronews

Ombudswoman asks EU institutions for more transparency amid complaints

The new European Ombudswoman has called on EU institutions to take a more proactive approach to improving transparency, following a rise in complaints about the issue. Teresa Anjinho, who began her mandate in February at the body responsible for holding the bloc's institutions and agencies to account, told Euronews that change was needed. "More can be done, especially at the European Commission, because there are successive delays in the delivery of documents," Anjinho said. "Access to information, which is often delayed, is then denied." According to the Ombudswoman's latest annual report, the bloc's lack of transparency is the biggest concern for EU citizens. "You can see that we had one of the biggest increases in complaints in the area of transparency. 42.2% of complaints are in the area of transparency, essentially access to documents," Anjinho explained. Anjinho stressed that she stood with citizens in her role as the head of the Ombudswoman's Office. "We are not mere administrative watchdogs. We are and must be a guardian of European citizenship and the citizen's right to participate," she said. Anjinho also noted that "the Ombudswoman's Office is an independent institution that acts as a bridge between citizens and the institutions; we are in the middle and what we serve is good European administration". "Any institution, be it (European) Parliament, the Commission or the Council, if it understands this, will always realise that it has an ally in the Ombudswoman's Office in terms of good administration. The fact that we criticise does not have to harm institutional relations," she added. Under her predecessor, the Ombudswoman's Office was involved in complaints against European Commission President Ursula von der Leyen regarding messages at the heart of the so-called "Pfizergate" scandal, linked to the purchase of vaccines during the COVID-19 pandemic. Anjinho is now launching her own inquiry into the issue of "revolving doors". It will examine whether former public officials who transition into lobbying or private sector roles may benefit from their previous positions, potentially creating a conflict of interest between public service and private gain.

Investigation Into EU Sustainability Reporting Bill Will Excite Activists,  Change Little
Investigation Into EU Sustainability Reporting Bill Will Excite Activists,  Change Little

Forbes

time26-05-2025

  • Politics
  • Forbes

Investigation Into EU Sustainability Reporting Bill Will Excite Activists, Change Little

February 27, 2025. European Ombudsman, Teresa Anjinho, takes oath of office before the Court of ... More Justice In April, a group of climate change organizations filed a complaint with the European Ombudsman asserting that the European Commission failed to follow the proper process in drafting legislation to reduce sustainability reporting requirements. To the excitement of sustainability activists, on May 21, the Ombudsman announced she was opening an official investigation. While the investigation will grab attention, the limited authority of the ombudsman will result in little to no change to the final results. In November, the new leadership of the European Commission proposed the Omnibus Simplification Package to reduce the scope of the Corporate Sustainability Reporting Directive and the Corporate Sustainability Due Diligence Directive. The proposal by the Commission was negotiated behind closed doors and largely held secret until the final draft was approved. The Commission's proposal was then sent to the Council and the Parliament. Each body will debate their respective positions, before the three enter into a trialogue to come to a final proposal. While the normal process of negotiating a new directive can takes years, it is expected that the final package will be adopted in the fall. The accelerated timeline has concerned some sustainability advocates who believe reforms deserve more study and public debate. In an effort to bring to thwart the reforms, in April, a complaint was filed to the European Ombudsman by 'eight civil society organizations': ClientEarth, Notre Affaire A Tous, Clean Clothes Campaign, European Coalition for Corporate Justice, Global Witness, Transport & Environment, Antislavery International and Friends of the Earth Europe. On May 21, Teresa Anjinho, the European Ombudsman, announced an official inquiry into the complaint. The case is titled 'The European Commission's failure to comply with its 'Better regulation guidelines' in preparing a legislative proposal on corporate sustainability reporting and due diligence.' In the official announcement, Anjinho states: "The complainants argue that, in this case, the Commission departed from key procedural requirements foreseen in the Better Regulation Guidelines and failed to carry out a public consultation and an impact assessment without a proper justification. In their view, the Commission performed a rushed inter-service consultation that was not in line with its rules of procedure. They also consider that the Commission did not carry out a climate consistency assessment as foreseen by the European Climate Law (Regulation 2021/1119)… 'This is the third complaint that my Office has received in recent months concerning the Commission's compliance with legal requirements, its Better Regulation Guidelines and further rules in preparing legislative proposals. It is clear that the issues raised in these three complaints raise a number of important issues for the Ombudsman. For these reasons, I have decided to open an inquiry into this complaint.' While the Ombudsman has the authority to conduct the investigation and produce a final report, authority to enforce recommendations is limited. 'The Ombudsman may be able to solve your problem simply by informing the institution concerned. If more is needed, every effort is made to reach an amicable solution that will put matters right. Should this fail, the Ombudsman can make recommendations to the institution. If these are not accepted, the Ombudsman can draw up a special report to the European Parliament, which must then take appropriate action.' However, once the report is sent to the Parliament, it becomes a political process. The report is sent to a committee that decides if further action is necessary. That committee can submit a motion for a resolution by the Parliament. Depending on the findings of the Ombudsman, there may be other legal options. The most likely is an action before the Court of Justice of the European Union making a claim that the Omnibus Simplification Package is illegal. Even if the Ombudsman finds the process was was flawed, and the Parliament or Court intervenes in the legislation, the result is simply a procedural fix. The broader policy debate over the CSRD and CSDDD remains, and the tide has shifted on green policies and sustainability. At best, a victory for climate activists with the Ombudsman only delays the inevitable.

EU watchdog launches inquiry into Commission's easing of green rules
EU watchdog launches inquiry into Commission's easing of green rules

Reuters

time23-05-2025

  • Business
  • Reuters

EU watchdog launches inquiry into Commission's easing of green rules

BRUSSELS, May 23 (Reuters) - The EU's Ombudswoman said on Friday she had launched an inquiry into how the European Commission fashioned its recent proposals to simplify sustainability laws, following a complaint by campaigners accusing the EU executive of weakening the rules without first consulting the public. In February, the Commission proposed legal changes it named the "simplification omnibus" that would exempt thousands of smaller European businesses from EU sustainability reporting rules, and curb obligations for bigger firms to check their supply chains for human rights and environmental problems. "The decision to open an inquiry follows a complaint by eight civil society organisations who argue that the Commission breached its better regulation guidelines by failing to justify why it did not carry out a public consultation or impact assessment on the draft legislation," Ombudswoman Teresa Anjinho said in statement. The European Ombudsman, an independent watchdog set up in 1995, investigates cases of maladministration in EU institutions, acting on its own initiative or in response to citizen complaints. Anjinho took up her post in February, taking over from Emily O'Reilly, who was the first woman to hold the post. Anjinho said she has asked the Commission a series of questions, including why it had not carried out a public consultation, and has requested more detail about which companies and stakeholders had been invited to meet with the Commission to discuss the issue. The complainants have accused the Commission of consulting industry lobbyists in closed-door meetings before publishing its proposal. A European Commission spokesperson did not immediately respond to a request for comment. The Commission had proposed changing the sustainability laws after European industries complained that burdensome EU rules meant they 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.

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