The European Union’s Ombudsman has requested an explanation from the European Commission over its decision to fast-track legal changes that would weaken sustainability reporting requirements for thousands of smaller businesses, without conducting public consultations or a full impact assessment.
The move follows a complaint from campaign groups who argue that the Commission bypassed standard procedures to dilute environmental regulations. In February, the Commission proposed exemptions for small and medium-sized enterprises (SMEs) from the EU’s sustainability reporting rules. The proposal was presented as a regulatory simplification measure to help European industries remain competitive against counterparts in countries like China and the United States, where environmental regulations are being scaled back.
Ombudsman Teresa Anjinho said in a letter published on Tuesday that the Commission had not justified skipping the usual impact assessment process or public consultation. “Based on the material made available to date, the Commission does not seem to have adequately justified derogating from its rules in this case,” Anjinho wrote.
She further criticised the Commission for failing to identify any urgent or unforeseen crisis that would necessitate the expedited procedure. Anjinho also raised concerns over the internal consultation process, which gave Commission departments just 24 hours to review the proposals, starting on a Friday evening—far shorter than the standard 10-day period.
A Commission spokesperson responded that the legal changes were necessary to provide clarity, as some firms were already subject to the new sustainability reporting rules. “Businesses and member states urgently needed legal certainty to comply with the sustainability framework,” the spokesperson said at a press briefing.
The European Ombudsman, whose role is to investigate potential maladministration within EU institutions, has given the Commission until 15 September to formally respond to the concerns raised.
