FESI updated its overview analysis on Omnibus I positions (attached) with the final position from the Parliament, agreed last week on 13 November. Interinstitutional trilogue negotiations officially started on Tuesday. The official four column document with the institutions' positions is available here.

‍

MORE DETAILS

As detailed in the analysis attached, many points advocated for by FESI throughout the legislative process have been taken onboard in both the Council and Parliament positions. We will nonetheless continue to monitor and engage in targeted advocacy to ensure 1. Our priorities are retained 2. Key outstanding priorities are included/improved.

‍

1. Positive developments:

Harmonisation: harmonisation clauses expanded to more core due diligence provisions.

Plausible information: susbsituted with verifiable information.

Suspend/terminate business relationship: clarification requested for when to suspend and clarification provided for when to teminate.

2. Key outstanding priorities (as included in our position paper) and summarised in our one communication paper.

Reintroduce limited assurance standards: mandatory standards only supported by Parliament, Council is prioritising guidelines.

SME shield/value chain cap: current positions limit and in some cases prohibit information requests altogether. We are therefore suggesting aligning CSDDD/CSRD information requirements, introducing right of information refusal instead of making it illegal for companies in scope to ask, relying on information contained in ESRS standards for listed SMEs to know which information can be requested.

Taxonomy: while the Omnibus changes to the Taxonomy have been addressed separately, a Delegated Act proposing a threshold to classify material activities was submitted for scrutiny to the Parliament and the Council in July. The scrutiny period, during which the Act may still be rejected, should end in January, meaning advocacy remains relevant.

NEXT STEPS

FESI will keep monitoring developments and informing members accordingly. We will also engage with key decision-makers to keep sharing our priorities.