Geneva, March 21, 2025.- The European Commission’s proposed Omnibus Simplification Package does not align with the UN Guiding Principles of Business and Human Rights (UNGPs) and risks undermining important advancements on the business and human rights agenda, the Working Group on business and human rights warned today.
“The proposal is regrettably a step backwards,” the experts said. “Rather than advancing efforts to promote responsible business and accountability, it risks diluting existing EU standards that have made the EU a leader in business and human rights,” the experts said.
The Working Group has followed the development of the EU’s Corporate Sustainability Due Diligence Directive (CSDDD) closely. From the outset, the experts recognised and applauded the CSDDD as a landmark initiative.
“Unfortunately, as it stands, the proposal is misaligned with the UNGPs which form the global standard for preventing and addressing the risk of adverse impacts by business activities on human rights,” the experts said in a statement.
“We share the concerns, including of civil society and businesses, that the current text undermines efforts to protect human rights across supply and value chains, and deliver justice for victims when harm occurs,” the Working Group said.
“Restrictions on human rights due diligence, particularly limiting it to ‘direct partners’, undermine the comprehensive approach that the UNGPs require,” they recalled.
The experts also expressed critical concerns about civil liability.
“Effective accountability mechanisms are necessary for businesses to address risks and impacts. Without civil liability, there is no incentive for businesses to take human rights due diligence and related responsibilities seriously,” the experts warned.
Relying on administrative penalties alone creates a ‘tick-box’ approach that fails to address the root causes of human rights abuses and threatens to undermine the effectiveness of the EU’s regulatory framework, they warned.
“Transparency, and inclusive and meaningful consultation with all stakeholders, including civil society and rights-holders, are essential to ensuring that human rights and environmental considerations are integrated into regulation effectively,” the Working Group said. “A rush to deregulate without proper stakeholder engagement erodes trust in the EU institutions and undermines good governance principles that the EU has long championed.”
The Working Group called on all parties to prioritise alignment with the UNGPs and uphold the EU’s reputation as a global leader in promoting human rights and sustainability in business practices as the Omnibus simplification package progresses through the European Parliament and the European Council.
“The EU must continue to lead by example by ensuring that the final outcome is consistent with the UNGPs. We remain ready to engage with EU institutions in this regard,” the experts said.