The EU’s Omnibus package is a serious letdown to government commitment on sustainability by failing to get the balance right between simplification and meaningful action.
Yesterday, the EU Commission finally published the first tranche of its much-awaited Omnibus package. Despite its efforts to clarify that new measures are aimed at simplification and boosting business competitiveness, many see this as a move towards deregulation. More concerning is the lack of stakeholder consultation and transparency in this process.
“ISEAL urges policymakers to reconsider the proposal and approach. We reaffirm our commitment to working towards effective implementation of new sustainability laws and strengthening existing voluntary initiatives,” said Vidya Rangan, Director, Policy and Engagement.
As an independent thought leader on credible, voluntary sustainability action, ISEAL is a supporter of effective and impactful government regulation, which can raise the floor on sustainability.
ISEAL and its members see new EU regulations (such as the Deforestation and Forced Labour Regulations and the Corporate Sustainability Due Diligence and Reporting Directives) as important measures to scale up supply chain action on human rights and environmental protection – measures that voluntary standards have been driving for decades.
A balance between simplification and meaningful action
We recognise the need for and intent behind the Omnibus to ensure policy simplicity, reduce bureaucratic burden on companies and support small and medium enterprises (SMEs) to compete. ISEAL and its members have been vocal about the potential adverse impacts of new mandatory measures on smallholders and SMEs on these very questions. We’ve also emphasised the importance of credible action and how policy recognition of existing voluntary tools can support that goal. But we believe that the Omnibus package gets the balance wrong between simplification and meaningful sustainability action.
Voluntary sustainability systems have been active for nearly forty years, defining frameworks and benchmarks for what sustainability looks like in practice across a range of supply chains, sectors and regions. They have been supporting companies (upstream and downstream) to understand their supply chains, sourcing origins, sustainability criteria and facilitating dialogue to address challenges and drive industry-wide action.
Sustainability has proven to be a competitive advantage for business, with the benefits of supply chain sustainability outweighing the short-term costs of due diligence or making more sustainable procurement choices. Trimming key provisions in new regulations that are material to advancing sustainability in the name of boosting competitiveness, does not align with decades of practitioner experience. Businesses who have led action on sustainability also recognise this and have expressed concern over the Omnibus proposals.
Sustainability systems bring decades of experience
ISEAL recognises that businesses need simplicity and clarity, and that SMEs need support to progress on sustainability. Voluntary sustainability systems have demonstrated that SMEs and even marginalised agricultural producers can meet high sustainability standards through targeted support and capacity-building. A focus on continuous improvement and a step-wise approach are some of the strategies that have successfully helped upstream producers and SMEs move towards sustainability goals.
We believe that this experience can support the Commission in its task to roll out implementation of these important sustainability regulations that have positioned the EU as a leader in sustainability. Bringing in the voices of those who have direct experience in driving supply chain sustainability is critical in that process, as is finding the right balance for the successful adoption of rules.
Meaningful consultation is essential for credibility
ISEAL urges policymakers in the EU Parliament and Council to reconsider the proposals in the Omnibus package. We believe that this package and process set the wrong precedent for government action and accountability towards meeting citizen expectations around sustainability.
We ask that the Commission adopts a meaningful approach to stakeholder dialogue and consultation to ensure that new sustainability regulations are impactful and less burdensome for businesses in the EU and beyond.
ISEAL also reaffirms its commitment to working with and strengthening the action of voluntary sustainability systems that have proven experience in advancing sustainability with credibility and a meaningful multistakeholder approach.
We believe that only a smart mix of voluntary and mandatory measures will achieve the scale of impact needed to address pressing environmental and social challenges.