On 26 February 2025, the European Commission adopted two proposals—collectively termed the Omnibus packages—intended to reduce administrative complexities in sustainability reporting and refine investment regulations throughout the European Union. These measures address both the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD), as well as the InvestEU Regulation.A brief outline of the main changes is provided below.
Rationale for change :
◽ Responds to widespread feedback on overly complex requirements
◽ Seeks to limit the coverage of the CSRD, lessen due diligence obligations, and refine reporting timelines
◽ Aims to help businesses more easily meet expectations related to environmental and social responsibilities
Scope adjustments (CSRD and CSDDD) :
◽ CSRD now applies mainly to organisations with more than 1,000 employees, reducing coverage by around 80%
◽ A voluntary standard will be offered for smaller entities previously in scope
◽ Certain CSDDD provisions have been simplified, notably around assessments involving indirect business partners
Extended deadlines :
◽ CSRD reporting requirements originally set for 2026 and 2027 (often called waves 2 and 3) are pushed back by two years
◽ Transposition of the CSDDD is deferred to 26 July 2027, with application for the largest businesses from 26 July 2028
Taxonomy and carbon border adjustment mechanism :
◽ Draft Delegated Act on Taxonomy Disclosures is open for public consultation until 26 March 2025
◽ Proposed revisions to the Carbon Border Adjustment Mechanism focus on technical updates that could affect reporting obligations
InvestEU Regulation :
◽ Proposed amendments target simpler reporting flows for stakeholders such as implementing partners, financial intermediaries, and beneficiaries
◽ Designed to lessen paperwork and promote more efficient use of resources
Further details on these measures can be found in the European Commission’s “Questions and answers on simplification omnibus I and II” document dated 26 February 2025 : https://ec.europa.eu/commission/presscorner/detail/de/qanda_25_615
On 26 February 2025, the European Commission adopted two proposals—collectively termed the Omnibus packages—intended to reduce administrative complexities in sustainability reporting and refine investment regulations throughout the European Union. These measures address both the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD), as well as the InvestEU Regulation.A brief outline of the main changes is provided below.
Rationale for change :
◽ Responds to widespread feedback on overly complex requirements
◽ Seeks to limit the coverage of the CSRD, lessen due diligence obligations, and refine reporting timelines
◽ Aims to help businesses more easily meet expectations related to environmental and social responsibilities
Scope adjustments (CSRD and CSDDD) :
◽ CSRD now applies mainly to organisations with more than 1,000 employees, reducing coverage by around 80%
◽ A voluntary standard will be offered for smaller entities previously in scope
◽ Certain CSDDD provisions have been simplified, notably around assessments involving indirect business partners
Extended deadlines :
◽ CSRD reporting requirements originally set for 2026 and 2027 (often called waves 2 and 3) are pushed back by two years
◽ Transposition of the CSDDD is deferred to 26 July 2027, with application for the largest businesses from 26 July 2028
Taxonomy and carbon border adjustment mechanism :
◽ Draft Delegated Act on Taxonomy Disclosures is open for public consultation until 26 March 2025
◽ Proposed revisions to the Carbon Border Adjustment Mechanism focus on technical updates that could affect reporting obligations
InvestEU Regulation :
◽ Proposed amendments target simpler reporting flows for stakeholders such as implementing partners, financial intermediaries, and beneficiaries
◽ Designed to lessen paperwork and promote more efficient use of resources
Further details on these measures can be found in the European Commission’s “Questions and answers on simplification omnibus I and II” document dated 26 February 2025 : https://ec.europa.eu/commission/presscorner/detail/de/qanda_25_615
