EU Omnibus Proposal Quick Take

marzo 6, 2025

6:39 am

Key Impact Points:

CSRD reporting narrowed: Only large companies (1,000+ employees) must comply, cutting affected businesses by 80%.
CSDDD delayed: Companies get an extra year for implementation, with a phased rollout starting in 2028.
EU Taxonomy streamlined: Data points reduced by 70%, and mid-sized companies get voluntary reporting options.

Sweeping Sustainability Reporting Reforms

The European Commission has unveiled the Omnibus I proposal to streamline sustainability reporting and ease compliance burdens for businesses, especially SMEs. Key measures include scaling back the Corporate Sustainability Reporting Directive (CSRD), delaying the Corporate Sustainability Due Diligence Directive (CSDDD), and simplifying the EU Taxonomy Regulation.

The reforms could save companies over €6 billion in administrative costs, but businesses that have already begun compliance preparations may face sunk costs.

CSRD: Less Reporting, More Focus on Large Companies

The proposal significantly narrows CSRD reporting requirements:

Only large companies (1,000+ employees) must comply, reducing the number of in-scope companies by 80%.
A two-year delay in reporting for large companies that haven’t yet adopted CSRD.
Listed SMEs (Waves 2 & 3) get more time for compliance.
A new voluntary standard for SMEs (VSME) is in development to ease reporting pressures.

Additionally, sector-specific reporting standards and the option to move from limited to reasonable assurance have been eliminated. However, the double materiality principle remains intact.

EU Taxonomy: Major Simplifications

The EU Taxonomy framework will be simplified to reduce reporting burdens:

Voluntary Taxonomy reporting for mid-sized companies (≤450M EUR turnover).
Data point reductions of 70%, with companies exempt from reporting on activities that are financially insignificant (<10% of turnover, capex, or assets).
Financial institutions get flexibility in Green Asset Ratio (GAR) calculations, excluding non-CSRD entities.

The Commission is also seeking feedback on simplifying “Do No Significant Harm” criteria.

CSDDD: Extra Time and Lighter Due Diligence

The CSDDD implementation timeline has been pushed back:

Deadline extended to 26 July 2027, with the largest companies starting compliance in 2028.
Due diligence requirements relaxed, limiting assessments beyond direct partners unless adverse impacts are suspected.
Periodic due diligence reviews extended from 1 year to 5 years.
No longer required to terminate business relationships as a last resort.
The proposal removes EU-harmonized civil liability rules, leaving enforcement to national laws.

CBAM: Relief for Small Importers

The Carbon Border Adjustment Mechanism (CBAM) gets exemptions:

Small importers (<50 tonnes/year) excluded from CBAM obligations.
Compliance requirements streamlined for remaining importers.
Adjustments reflect insights from CBAM’s transitional phase since October 2023.

What’s Next?

The European Parliament and the Council will review and decide on the Omnibus I package.
The Commission urges priority treatment, particularly on CSRD delays and CSDDD extensions.
The EU Taxonomy amendments will undergo public consultation before final adoption.