Brussels, 16 December 2025. The International Federation for Human Rights (FIDH) regrets the major setback for corporate accountability through this final vote. By passing the Omnibus I package, European Union (EU) institutions clearly discredited their role as global leaders in the protection of human rights and the environment, and undermined years of progress in tackling corporate impunity.
"This vote sets a serious precedent for EU policy-making by signalling a clear prioritisation of corporate interests over the protection of people and the planet. Gutting out the Directive of its core obligations represents a regrettable step back in access to justice for victims of corporate abuses worldwide. As the EU embarks on a deregulation agenda, with several other Omnibus packages underway, we urge legislators to preserve European foundations and human rights leadership", said Gaëlle Dusepulchre, Deputy Head of FIDH’s Business, Human Rights and Environment desk.
The final agreement comes after several civil society warnings about the record speed and lack of transparency, inclusivity, and impact assessments that underpinned the process. The latter was launched by the Commission last February in a so-called "simplification" effort to boost EU competitiveness. The EU Ombudsman echoed these concerns in her investigation last November, depicting the Commission’s Omnibus elaboration as "maladministration".
A hollowed-out law – with real-life consequences
Through the adoption of Omnibus I, the EU seriously weakens the CSDDD and slashes hard-won protections for victims of corporate abuses, notably by:
– lowering the number of companies that must comply with the law’s obligations and limiting States’ ability to go beyond some of the Directive’s provisions when introducing obligations at the national level;
– restricting requirements for meaningful stakeholder engagement;
– deleting all references requiring companies’ models and strategies to be compatible with the transition to a sustainable economy and limiting global warming to 1.5°C; this sharply contrasts with States’ obligations under international law to take all necessary measures to protect the climate system and environment;
– removing the EU-wide civil liability regime, leading to a fragmentation of legal systems across the Union;
– eliminating the financial sector assessment clause, indefinitely exempting the financial sector from conducting due diligence under the Directive.
While strongly watered down, the Directive preserves some of its core substance. The largest companies will have to develop a due diligence policy and integrate it in their risk management systems, with the aim to prevent and address human rights and environmental impacts in their value chains.
The exercise follows a risk-based approach to prioritise the impacts that are most severe and likely to occur in the operations of the company, its subsidiaries and business partners. Companies will also have to provide remedy for the harms they caused.
What’s next?
EU Member States now have until 26 July 2028 to transpose the CSDDD into domestic law. This upcoming phase provides States with the opportunity to address some of the protection gaps. Doing so in an ambitious and effective way would provide greater legal certainty and accountability for companies, as well as improved access to justice for victims.