EU regulator accuses Commission of rushing sustainable transparency proposal

Editorial

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The EU has recently proposed to simplify sustainable transparency rules in the Sustainable Finance Disclosure Regulation (SFDR), and earlier this year passed the Omnibus Act to lower transparency requirements in the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSD3).

In May 2025, the EU launched an inquiry into the simplification of sustainability proposals, following a complaint from human rights campaigners.

The complaint arose in April, stating that the EC had proposed the simplification package following meetings with industry lobbyists, and had failed to consult the public on the changes, bringing into question whether the new changes align with EU sustainability goals.

The complaint, filed by ClientEarth and seven other campaign groups, stated: “The closed-door approach followed by the Commission, which favoured consulting certain stakeholders over others, also risks fuelling anti-democratic discourses and eroding the trust of EU citizens in the EU institutions.”

Ombudswoman Teresa Anjinho said: “Taken together the shortcomings amounted to maladministration.

“Certain principles of good lawmaking cannot be compromised even for the sake of urgency.”