The Independent watchdog, EU Ombudsman Teresa Anjinho, recently opened a formal inquiry into how the Commission prepared its “Omnibus Simplification Package,” a legislative proposal aimed at scaling back corporate sustainability reporting and due diligence obligations.
The inquiry follows complaints from a coalition of NGOs, which allege that the Commission bypassed key procedural safeguards, including public consultation and climate impact assessments.
The findings could have wide-ranging implications for the future of ESG regulation in Europe, as well as for legal certainty and investor confidence.
About Omnibus Simplification Package
The Omnibus Simplification Package, released in February 2025, proposes to reduce sustainability-related regulatory burdens, especially for SMEs significantly. The Commission positions it as a way to “cut red tape” and support business competitiveness, but critics warn it could weaken the EU’s climate and human rights commitments.
Why is the Ombudsman Investigating?
The inquiry was triggered by a formal complaint from eight NGOs, including ClientEarth, Global Witness, Friends of the Earth Europe, and Antislavery International.
“The complainants argue that, in this case, the Commission departed from key procedural requirements foreseen in the Better Regulation Guidelines and failed to carry out a public consultation and an impact assessment without a proper justification. In their view, the Commission performed a rushed inter-service consultation that was not in line with its rules of procedure. They also consider that the Commission did not carry out a climate consistency assessment as foreseen by the European Climate Law (Regulation 2021/1119)…” said the Ombudsman in an official statement.
The NGOs allege:
- No public consultation: The Commission failed to consult stakeholders before releasing the proposal, breaching the EU’s Better Regulation Guidelines.
- No impact assessment: The package was introduced without a proper assessment of economic, environmental, and social impacts.
- No climate alignment check: The Commission did not evaluate whether the changes are consistent with the EU’s 2050 climate neutrality goal, as required by the European Climate Law.
- Opaque process: Stakeholder input was allegedly limited to confidential meetings, raising transparency concerns.
These actions, the NGOs claim, amount to maladministration and undermine the democratic integrity of EU lawmaking.
What is the Ombudsman asking for?
The Ombudsman has requested the Commission to clarify:
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Issue
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Ombudsman’s Request
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Public input
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Why was there no open consultation?
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Stakeholder access
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What occurred during the February 2025 stakeholder meetings?
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Urgency
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What justified skipping an impact assessment?
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Climate alignment
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Was a climate consistency check performed?
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The Ombudsman will review documents and meet with Commission staff before June 18, 2025.
This is the third recent case where the Ombudsman is reviewing how the Commission handles legislative preparation, signaling rising scrutiny over regulatory transparency.
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