The Polish Presidency of the Council of the European Union has submitted its first draft compromise on the Omnibus Directive, which amends the existing frameworks for corporate sustainability due diligence (CS3D) and non-financial reporting (CSRD).
In its proposal, the Polish Presidency largely supports the European Commission’s amendments to the CS3D, while offering key clarifications, particularly on the conditions under which companies must extend due diligence beyond their direct business partners.
According to the draft, companies will be required to act when they have “plausible information” indicating negative impacts further down their value chains. The credibility of this information will be a decisive factor. The Polish Presidency proposes expanding the list of acceptable sources of information, adding to NGO alerts and media reports, official governmental data, studies on grievances and requests from local communities, and reports by academics or international institutions. This broader scope is intended to strengthen the integrity and accountability of corporate supply chains by encouraging companies to act proactively when credible risks to human rights or the environment are identified.
Additionally, the Polish Presidency has reintroduced the obligation for companies to suspend business relations with partners responsible for serious violations of human rights or environmental standards, a provision that had previously been debated.