dti Welcomes EU Council’s Compromise on Sustainability and Supply Chain Rules

sustainability

The German Frozen Food Institute (dti), the leading trade association representing the frozen food sector, has voiced strong support for the European Council’s recently adopted negotiating position on proposed reforms to EU sustainability and supply chain regulations.

The Council’s stance—adopted under the Polish Presidency as part of the “Omnibus I” legislative package—aims to simplify both the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD), while balancing the twin priorities of sustainability and economic competitiveness.

Sabine Eichner, Managing Director of the dti, welcomed the compromise, characterizing it as a long-needed step toward easing regulatory pressure on companies while reinforcing their role in advancing climate and social responsibility.

“It is good that the EU Council under the Polish Presidency has now found a compromise that relieves the burden on companies and strengthens sustainability and competitiveness in equal measure. Our companies stand behind the goals of sustainable business. However, they urgently need planning security and practicable framework conditions. This is the only way to invest in greater sustainability and to build sustainable reporting systems. It is crucial to create a reliable legal framework that takes into account the needs of SMEs,” Eichner said.

The dti expressed particular support for raising the company-size thresholds that determine which firms fall under the scope of the directives. According to the institute, this move will help protect small- and medium-sized enterprises (SMEs) from excessive administrative demands that could compromise their competitiveness.

Additionally, the Council’s emphasis on a risk-based approach to due diligence was welcomed as a pragmatic measure that mirrors established practices in food law, particularly those related to traceability. Limiting due diligence obligations to direct business partners, the dti argued, is both appropriate and effective, allowing companies to monitor supply chains efficiently without becoming mired in impractical compliance burdens.

Eichner also emphasized the importance of aligning regulatory intent with practical implementation on climate targets. “Compliance with climate targets must continue to be a priority. Above all, however, we need practical implementation measures – and not just plans. The resources in the companies should be used for concrete climate protection projects as far as possible,” she said.

The frozen food sector in Germany, a key component of the country’s food economy, has made substantial voluntary investments in recent years in energy efficiency, emissions reduction, and socially responsible sourcing practices. But growing regulatory complexity, coupled with vague timelines and unclear implementation requirements, has begun to hamper further progress, according to the dti.

In its statement, the institute called on the European Commission, the Council, and the European Parliament to work collaboratively to finalize a legal framework that is clear, streamlined, and focused. Only through a unified and practical regulatory environment, it argued, can companies align sustainability efforts with profitability and unlock more rapid progress toward climate and human rights goals.

“It is high time that the EU Commission, the European Council and the European Parliament pull together to create a clear, simple and targeted legal framework for more sustainability, more climate protection and human rights due diligence. Only if sustainability and profitability are thought of and practiced together will we achieve the necessary progress more quickly,” said Eichner.

Find out more at: https://www.tiefkuehlkost.de