The adoption of the Omnibus report by the European Parliament’s Legal Affairs (JURI) Committee is a critical milestone for the EU simplification agenda. This signals the EU’s ongoing efforts to simplify the regulatory landscape and foster a more business-friendly environment, ensuring that legislation remains clear, consistent and practical for companies operating in Europe.

However, key concerns remain. In particular, the issue of extraterritoriality has yet to be adequately addressed. The current provisions risk creating significant legal and operational challenges for companies with global operations and supply chains that extend beyond the EU. This is not only an issue for US-based companies, but for all businesses with international footprints that may be subject to overlapping or conflicting legal obligations in jurisdictions outside the EU.

Moreover, we regret the continued inclusion of transition plans within the Corporate Sustainability Due Diligence Directive (CSDDD) as it creates unnecessary overlap with the Corporate Sustainability Reporting Directive (CSRD) and legal risk. Indeed, the CSRD already defines necessary standards for transition plans.

Policymakers must tackle these remaining issues during the upcoming trilogue negotiations to ensure a balanced, proportionate and globally coherent framework that supports both sustainability and competitiveness.