Euratex believes the European Parliament’s Legal Affairs Committee approving amendments to the European Union’s (EU) rules on sustainability directives and due diligence obligations for businesses, represents an "important step towards a clearer, more predictable, and investment-friendly framework".
It says the reforms are "intended to reduce administrative burden, increase legal certainty, and make sustainability obligations more proportionate and workable".
From a timeline perspective, it explains the European Parliament’s Committee on Legal Affairs (JURI) adopting the Omnibus Simplification compromise will pave the way for a plenary vote expected this week — the final step before trilogue negotiations can begin.
The Omnibus package aims to simplify key sustainability legislations, including the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CS3D).
Euratex asserts the reforms are intended to reduce administrative burden, increase legal certainty, and make sustainability obligations more proportionate and workable, especially for SMEs and mid-sized companies.
The association states: "For many businesses in the textile and clothing industry, the complexity and pace of regulatory change have created uncertainty and delayed investments in circularity, innovation, and sustainable production."
It welcomes this progress and continues to advocate for a sustainability framework that is ambitious yet achievable — one that enables companies to focus on delivering tangible environmental and social results rather than managing excessive reporting requirements.
In parallel, Euratex has submitted recommendations to Europe's Voice in Corporate Reporting (EFRAG) on the simplification of the European Sustainability Reporting Standards (ESRS).
Euratex's proposals call for:
- Transition periods for complex disclosures
- Sector-specific guidelines tailored to textiles
- Clearer and harmonised indicators
- Stronger safeguards for data comparability and confidentiality.
It states: "Together, these initiatives — the Omnibus simplification and the ESRS review — can help build a coherent, stable, and business-oriented sustainability framework that supports Europe’s twin goals of competitiveness and climate ambition."
Better Cotton warns against 'dangerous dilution' of EU ESG reporting
The Better Cotton Initiative (BCI) has described the approval of the Omnibus proposal by the European Parliament’s Committee on Legal Affairs as being of "great concern".
It argues these changes, namely to the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) "threaten to significantly dilute business reporting and due diligence obligations".
Better Cotton Initiative's policy and advocacy manager Hélène Bohyn said: “What is presented as ‘simplification’ is in truth a dangerous dilution of essential safeguards. The European Parliament’s endorsement of the changes significantly weakens legal pressure for corporate accountability and risks dismantling the transformative power of the CSRD and CSDDD - landmark frameworks built to protect human rights and the environment. We strongly urge the European Parliament to reconsider and call on businesses to resist the temptation to lower their standards."
Earlier this week, International Apparel Federation's secretary general Matthijs Crietee pointed out that for garment manufacturers CSDDD is a complex puzzle and the IAF is working with partners such as Fair Wear, the OECD, the Fashion Producer Collective and the STAR Network to provide members with the correct information.
