Governing due diligence in global supply chains after the Omnibus Directive

The article critically examines the simplification rationale underlying the Omnibus amendments to the Corporate Sustainability Due Diligence Directive (CS3D), contending that simplification need not entail a reduction in the scope or effectiveness of corporate due diligence obligations. It identifies key shortcomings in the current approach, including limiting due diligence duties to direct business partners, weakening of stakeholder involvement, and undermining the complementarity between administrative and judicial enforcement. The article proposes an alternative framework in which simplification is pursued through digital governance tools rather than deregulation. It shows how digital platforms, artificial intelligence, and interoperable monitoring systems can reduce compliance and enforcement costs while enhancing traceability, risk detection, and stakeholder participation across global supply chains. The article further argues that effective transposition should preserve strong coordination between administrative and judicial enforcement and realign power and liability through shared contractual liability and joint and several liability in tort. It also explores how the growing use of AI in supply-chain governance affects the distribution of responsibility and calls for coordination between due diligence regimes and the AI Act. Finally, it advances policy recommendations for Member States, including the digitalization of compliance and remediation plans, broader stakeholder participation, clearer enforcement coordination, and liability rules capable of ensuring effective protection of fundamental rights and environmental standards without sacrificing the objective of simplification.