I propose to take Questions Nos. 61 and 74 together.
Ireland supports the simplification and burden reduction agenda at EU level. Specifically in relation to the Omnibus on sustainability, the proposals are intended to address disproportionate burdens on businesses, in particular on SMEs, whilst retaining key aspects in relation to corporate responsibility. What we wish to see is better regulation, not deregulation.
European Commission document COM (2025) 80, or the so-called ‘Stop the Clock’ Directive, which postpones the dates for certain corporate sustainability reporting and due diligence requirements has been agreed by the co-legislators and will be transposed in Ireland before the 31 December 2025 deadline.
Commission document COM (2025) 81 is the so-called ‘Content’ Directive and includes a number of proposed legislative changes to the Corporate Sustainability Due Diligence Directive (CSDDD).
In relation to the necessity to conduct a risk-based approach, the Commission’s proposal retains the requirement for in-scope companies to conduct risk-based human rights and environmental due diligence of their own operations, those of their subsidiaries and their direct business partners. If plausible information suggests the existence or possibility of adverse impacts arising from the operations of their indirect business partners, the company will be required to conduct an in-depth assessment. If that assessment confirms the existence of an adverse impact, further due diligence will need to be carried out.
Discussions are ongoing at EU level as to how best to provide for a civil liability regime in an effective and proportionate manner. The proposal does maintain the requirement which ensures that victims of adverse impacts have effective access to justice and their right to an effective remedy.
In relation to climate action, the proposal seeks to simplify the provisions on transition plans by aligning with the provisions of the Corporate Sustainability Reporting Directive. In-scope companies will be required to include implementation actions, planned and taken, in their climate transition plans. I acknowledge the importance of robust climate action and the role of corporate accountability in achieving our international obligations under the Paris Agreement and the European Green Deal. Ireland remains committed to achieving its legally binding climate targets. The CSDDD does not aim to provide a comprehensive framework for the protection of the environment in the context of companies’ operations. Due diligence processes are complementary to, rather than replacing specific legal obligations that operate to protect the environment.
I have been clear in my support for the simplification and burden reduction agenda at EU level and welcomed the Commission’s Omnibus proposals aimed at strengthening EU competitiveness. This does not mean losing sight of the objectives of the CSDDD but rather giving careful consideration to the proposals for change.
The omnibus proposals have been discussed at a number of EU fora where Member States, including Ireland, have set out their position in relation to the proposals. The discussions on the proposed changes are ongoing at EU level. My Department will continue to assess their implications as discussions progress.
