Green MEP Catarina Vieira has raised concerns that the European Commission's Omnibus I simplification package may inadvertently undermine corporate sustainability due diligence by restricting the flow of sustainability information between companies and their suppliers. In a parliamentary question submitted on 9 April 2026, Vieira warns that the so-called 'value chain cap' in the Corporate Sustainability Reporting Directive (CSRD) omnibus could discourage companies from engaging in meaningful dialogue with business partners and conducting human rights impact assessments.
Vieira's question focuses on three specific areas of legal uncertainty: whether strict limits exist on what companies can ask suppliers and what the consequences are for exceeding them; whether information gathered through due diligence or human rights impact assessments can later be used for reporting; and whether contractual agreements can request information beyond the voluntary sustainability reporting standard. She argues that without clarity, companies may rely excessively on lawyers and avoid proactive supplier engagement, undermining the objectives of the Corporate Sustainability Due Diligence Directive (CSDDD).
The MEP asks the Commission to clarify how quickly it can provide guidance to prevent these unintended consequences. The Commission is expected to respond within approximately six weeks, and its answer will signal whether it prioritises simplification or maintains robust due diligence requirements. The question highlights a tension between reducing administrative burdens and ensuring effective human rights and environmental protections, affecting EU companies, suppliers, civil society, and regulators.
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