Business on EU Omnibus: Nestlé urges lawmakers to provide clarity quickly

Signify calls on Commission to engage in ‘meaningful dialogue’, while trade bodies welcome ‘steps in right direction’

Nestlé has urged EU lawmakers to provide speedy “legal clarity” on proposed changes to its sustainability rules. 

Last week, the European Commission laid out its plans to amend the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CS3D), including cutting their scope and delaying their implementation.   

Months of political negotiations are now expected on the ‘omnibus’ before final changes are agreed by European Council and Parliament. 

A spokesperson for Nestlé, which is covered by both directives, told REP it “urge[d] the European lawmakers to provide legal clarity as soon as possible” and will “carefully scrutinise the potential impact of the changes now proposed”. 

The spokesperson added that, while the company wanted to see decisions made quickly, haste should not come at the expense of the “ambition level” of the rules. 

Nestlé has “been preparing intensively” for CSRD and CS3D, which it had considered to be settled legislation.  

The firm was one of eight to come out in support of the two rules in January, describing them as having the potential “to drive long-term resilience and value for European businesses in support of competitive advantage”. 

Another signatory to the statement was lighting specialist Signify, whose global head of public and government affairs, Mario Giordano, has now asked the Commission to engage in “meaningful dialogue” with companies like Signify.  

“Ensuring a level playing field, combined with policy certainty and predictable penalties, not only promotes innovation and growth but also builds trust and accountability within the corporate sector,” he told REP. 

Dutch chocolate-maker Tony’s Chocolonely pushed back on the proposed changes to CS3D yesterday, arguing that its own practices were proof that supply chain due diligence is possible.  

The firm, which is not in scope of the EU law, called on European co-legislators to reject the Commission’s proposals to water it down. 

But many business associations have welcomed the plans.  

The European Roundtable on Industry, a forum of European CEOs, described the omnibus as one of the “first important steps” towards implementing the Draghi report, which provided recommendations on boosting the EU’s competitiveness. 

Deutsches Aktieninstitut, the trade body for Germany’s listed companies, also welcomed it, but said there was “still a significant need for improvement”. 

The group, which explained why it wanted the Taxonomy Regulation made voluntary on a recent REP podcast, complained of “insufficient relief” for its members in the current plans.  

It also pointed to uncertainty around the extent to which CSRD data points will be reduced, which the Commission has pledged to achieve through a review of the European Sustainability Reporting Standards.  

Tech association DigitalEurope said the proposed delays to CSRD and CS3D should be “used to push for even better harmonisation and ensure companies have the legal clarity they need to plan ahead”.