Briefing: What Businesses and Investors Need to Know About the Omnibus 1 Value Chain Cap on Information Requests

As part of the sustainability reporting and due diligence requirements under the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD), companies need to request sustainability-related information from their value chain partners.  

The Omnibus 1 Directive introduced restrictions on how and when such information requests can be made in order to protect suppliers from disproportionate requests. These consist of the value chain cap under the CSRD and the limits on information requests under the CSDDD. For companies in scope of these directives, it is important to understand the new restrictions.

Our legal briefing breaks down:

• The scope and limitations of both caps, specifying what type of information requirements are legitimate  

• The conditions on information requests, including the statutory right to refuse and how in-scope companies should interact with protected undertakings

• The interplay between these two legislations

• The practical implications for companies, as well as how companies can avoid unnecessary duplication  

The publication also points to legal uncertainties resulting from the European Commission’s proposed Voluntary Standard when it comes to due diligence scoping, GHG data and climate risk information and proposes practical steps for companies to preserve effective supply chain management while remaining fully compliant with the caps.

Who this legal guide is for:

• Companies in scope of the CSRD and CSDDD who want to know how to legitimately request information from their value chain partners  

• Business partners in the value chains who want to understand how they can handle information requests under the revised CSRD and CSDDD

• Investors who want to understand what information they will have access to under the new post-Omnibus 1 sustainability reporting regime  

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If you have any questions about the briefing, please get in contact with Senior Policy Officer Julia Otten at julia.otten@frankbold.org.