The EU Omnibus: changes on the horizon
Big changes are on the horizon for corporate sustainability reporting in Europe with the Omnibus Simplification Package, set to be unveiled on 26 February. To be informed by the EU’s broader Competitiveness Compass, the omnibus aims to streamline regulatory requirements, particularly for small and medium-sized enterprises (SMEs).
The omnibus will revise three key sustainability regulations: the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD), and the EU Taxonomy. The CSRD, which mandates digital ESG reporting, has been a cornerstone of the EU’s sustainability agenda, requiring companies to disclose environmental, social, and governance impacts in a structured, machine-readable format.
Pressure to reform sustainability reporting has been particularly strong from Germany and France, where business groups have called for scaled-back and delayed reporting obligations. Meanwhile, climate-focused stakeholders argue that weakening these regulations could undermine investor confidence and slow Europe’s green transition. A recent European Commission publication suggests the omnibus will simplify reporting, due diligence, and taxonomy, aiming to reduce administrative burdens by 25% for businesses and at least 35% for SMEs. Other proposals under discussion include delaying implementation deadlines, raising reporting thresholds, and limiting supply chain due diligence requirements to protect SMEs from a range of obligations.
With the full proposal expected in February, businesses and policymakers must strike a careful balance between reducing complexity and maintaining high-quality corporate reporting. For updates on the omnibus and its impact on digital sustainability reporting, see here – and stay tuned.
