UN Experts Warn EU Risks Undermining Human Rights Standards with Omnibus Simplification Proposal

In a strongly worded statement, the Working Group criticized the proposal as “a step backwards” in the EU’s efforts to regulate corporate behavior and protect human rights along global value chains.

The United Nations Working Group on Business and Human Rights has raised alarm over the European Commission’s proposed Omnibus Simplification Package, warning that it diverges from the globally recognized UN Guiding Principles on Business and Human Rights (UNGPs) and threatens to reverse hard-won progress on corporate accountability within the EU.

In a strongly worded statement, the Working Group criticized the proposal as “a step backwards” in the EU’s efforts to regulate corporate behaviour and protect human rights along global value chains. “Rather than advancing efforts to promote responsible business and accountability, it risks diluting existing EU standards that have made the EU a leader in business and human rights,” the experts said.

The warning comes amid ongoing debates over the future of the Corporate Sustainability Due Diligence Directive (CSDDD), a flagship piece of legislation designed to enforce corporate accountability for environmental and human rights abuses throughout supply chains. The CSDDD, introduced by the European Commission in 2022, marked a watershed moment for responsible business conduct, aligning the EU with global norms and expectations.

However, the Omnibus Simplification Package, introduced as part of the Commission’s broader regulatory reform agenda, aims to streamline and reduce administrative burdens on businesses. Critics argue that in doing so, the package weakens key due diligence requirements, especially by limiting companies’ obligations to their direct business partners, ignoring the broader risks posed through complex and often opaque supply chains.

“The current text is misaligned with the UNGPs, which require a holistic approach to preventing and addressing business-related human rights abuses,” the Working Group said. “Human rights due diligence must extend beyond direct contractual relationships to be effective.”

Concerns have also been raised about the removal or weakening of civil liability provisions, which would allow victims of corporate abuse to seek redress in court. The Working Group emphasized that without robust enforcement mechanisms, including legal avenues for accountability, corporate commitments to human rights may amount to little more than box-ticking exercises.

“Effective accountability mechanisms are necessary for businesses to address risks and impacts,” the experts stated. “Without civil liability, there is no incentive for businesses to take human rights responsibilities seriously.”

Relying solely on administrative penalties, they warned, could promote formal compliance over genuine change, risking a regulatory framework that looks good on paper but fails in practice.

The statement echoed concerns voiced by civil society organizations, trade unions, and responsible businesses across Europe, many of whom fear the simplification package reflects a broader trend of deregulation under the guise of efficiency. The Working Group underscored that meaningful stakeholder engagement, including with rights-holders, is critical to ensuring regulations reflect real-world impacts.

“Transparency, and inclusive consultation with civil society and affected communities, are essential to developing effective regulations,” they said. “A rush to deregulate without input erodes public trust and undermines the EU’s own principles of good governance.”

The experts called on the European Parliament and the Council to prioritize alignment with the UNGPs as they debate and revise the Omnibus proposal in the coming months. They urged EU institutions not to jeopardize the bloc’s global leadership on sustainability and human rights in pursuit of short-term regulatory streamlining.

“The EU must continue to lead by example,” the Working Group concluded. “We stand ready to support efforts to ensure that the final legislation reflects international human rights standards and promotes sustainable and accountable business practices.”

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