Just as the European institutions adopted a Stop The Clock before a deep dive on Omnibus provisions, a coalition of NGOs filed a formal complaint on April 18, 2025, with the European Ombudsman. They claim the European Commission failed to assess the environmental and social impacts of amending the CSRD, CS3D and the Taxonomy, particularly in the context of the EU’s climate-neutrality targets. The NGOs also consider that the procedure failed to include public consultation and is therefore not aligned with democratic values.
Based on such a complaint, the European Ombudsman will first address the admissibility of the complaint and may then open an inquiry to assess potential maladministration and ultimately make recommendations. For instance, the Ombudsman could take the view that the Commission failed to ensure sufficient transparency in the decision-making process, which would constitute maladministration. The Ombudsman could then recommend that the Commission publish public reports on the discussion surrounding the preparation of the Omnibus, or organize a public consultation. However, a full inquiry procedure before the European Ombudsman typically takes over a year. Therefore, unless the NGOs complaint is dismissed, the Ombudsman's recommendations may be issued too late, after the Omnibus regulation is adopted.
Whatever the outcome of this complaint, the NGOs are sending a clear message that they will not back down on ESG and sustainability issues. Discussions before the European Parliament regarding the contents on the Omnibus are expected to be difficult and fueled by arguments provided by stakeholders, including NGOs. Even if regulatory obligations become less stringent or burdensome on companies, which is one of the objectives of the Omnibus, there will still be a high risk of ESG and climate change litigation.
A coalition of eight NGOs lodged a formal complaint today with the European Ombudsman, condemning the undemocratic, untransparent and rushed way in which the European Commission has developed the Omnibus proposal. NGOs deplore that the process leading to this proposal was deeply flawed, enabling a small group of industry interests to take control and push for the deregulation of key sustainability laws.
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