New legal briefing explains Omnibus 1 limits on value chain information requests

Responsible Companies team of Frank Bold has developed a legal briefing outlining what companies, business partners and investors need to know about the new restrictions on sustainability-related information requests introduced by the Omnibus 1 revisions to the CSRD and CSDDD.

Companies covered by the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) are required to obtain sustainability-related information from their value chain partners. This information is needed for sustainability reporting and due diligence purposes.

Following the Omnibus 1 Directive, new restrictions now apply to the way companies can request information from suppliers and other business partners. These restrictions are intended to prevent disproportionate information demands. They include the value chain cap under the CSRD and the limits on information requests under the CSDDD.

For companies falling within the scope of these rules, it is important to understand when information requests remain legitimate and how the new limitations affect their interaction with value chain partners.

The legal briefing covers:

• the scope and limitations of both caps, including what types of information requirements remain legitimate, and the conditions that apply to information requests, including the statutory right to refuse such requests
• how in-scope companies should engage with protected undertakings
• the relationship between the CSRD and CSDDD rules
• the practical implications for companies, and ways companies can avoid unnecessary duplication when requesting information from their value chains

The publication also identifies legal uncertainties linked to the European Commission’s proposed Voluntary Standard, especially regarding due diligence scoping, greenhouse gas data and climate risk information.

It also sets out practical steps that companies can take to preserve effective supply chain management while complying with the new caps.

The guide is intended for:

• companies covered by the CSRD and CSDDD that need to request information from their value chain partners in a legitimate way, ‍
• business partners in value chains that want to understand how to handle information requests under the revised CSRD and CSDDD, ‍
• investors who want to know what information will be available to them under the post-Omnibus 1 sustainability reporting regime.

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