JBCE co-signs a Joint Statement with KITA on the Omnibus I proposal concerning extraterritoriality

04/11/2025

On 4 November 2025, the Japan Business Council in Europe (JBCE), together with the Korea International Trade Association (KITA), co-signed a joint statement addressing the extraterritorial implications of the EU’s Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD) under the Omnibus I proposal.

The joint statement calls on EU policymakers to ensure a coherent and practical implementation of the two directives for non-EU companies, focusing on the following points:

• CSRD standards & CSDDD guidelines for non-EU companies two years prior to legal application dates
  Early publication of tailored reporting standards and due diligence guidelines for non-EU companies is essential to secure sufficient preparation time and ensure effective compliance, given the complexity of global value chains.
• Jurisdictional clarity & prevention of litigation risk under CSDDD
  A harmonized civil liability regime at EU level is necessary to avoid fragmented enforcement and prevent non-EU companies from facing disproportionate or overlapping litigation risks across Member States.
• Convergence of financial & non-financial reporting scopes
  Aligning the scopes and exemption regimes of financial and sustainability reporting will reduce duplication and reporting burdens, ensuring consistency between CSRD and existing financial reporting frameworks.

JBCE and KITA reaffirm their support for the objectives of CSRD and CSDDD and emphasize the need for clear, proportionate, and globally coherent rules to enable effective implementation by companies with significant EU and global operations.

 

For more information, please contact:

Nagisa Kagawa

Policy Manager (CS)

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