The EU’s Ombudswoman has accused the European Commission of hastily implementing new rules on sustainable reporting.
The EU has recently proposed to simplify sustainable transparency rules in the Sustainable Finance Disclosure Regulation (SFDR) and earlier this year passed the Omnibus Act to lower transparency requirements in the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSD3).
In May 2025, the EU launched an inquiry into these proposed simplifications, prompted by a complaint from human rights advocates. The complaint, filed in April by ClientEarth and seven other groups, claimed that the Commission developed the simplification package without public consultation, focusing instead on discussions with industry lobbyists. This raised concerns about whether the changes align with EU sustainability goals.
The complaint stated: “The closed-door approach followed by the Commission, which favoured certain stakeholders over others, also risks fuelling anti-democratic discourses and eroding the trust of EU citizens in the EU institutions.”
Ombudswoman Teresa Anjinho remarked, “Taken together, the shortcomings amounted to maladministration. Certain principles of good lawmaking cannot be compromised even for the sake of urgency.”