The Ominous Omnibus: What New EU Legislation Could Mean For Sustainability Reporting

Following calls to reduce the regulatory burden imposed on businesses, the European Union is poised to reform a series of laws passed under the EU Green Deal
Karma Rowe · 1 day ago · 2 minutes read


Sustainability Reporting in the EU: Unveiling the Omnibus Simplification Package

Reforming Reporting Regulations

In response to concerns about excessive reporting burdens on businesses, the European Union is poised to reform sustainability reporting regulations. The Omnibus Simplification Package will target the EU Taxonomy for Sustainable Activities, Corporate Sustainability Reporting Directive (CSRD), and Corporate Sustainability Due Diligence Directive (CSDDD).

"We will look at the triangle of Taxonomy, CSRD, CSDDD," said Ursula von der Leyen, President of the European Commission.

Anticipating the Proposed Changes

The content of the Omnibus Simplification Package remains largely unknown, sparking speculation and uncertainty. However, insights from the European Commission's Competitive Compass suggest a comprehensive approach to reducing administrative burdens.

"This Commission will deliver an unprecedented simplification effort," the Compass states.

Corporate Sustainability Reporting Directive (CSRD)

The CSRD mandates reporting of greenhouse gasemissions and other environmental, social, and governance (ESG) data by large companies.


Likely Outcomes:
  • Delayed reporting for small and medium-sized enterprises (SMEs) and non-EU companies
  • Raised reporting thresholds for both large companies and SMEs
  • Potential elimination of sector-specific standards and Scope 3 reporting requirements

Corporate Sustainability Due Diligence Directive (CSDDD)

The CSDDD imposes reporting and legal liability on large companies for their supply chains to promote sustainable practices.


Likely Outcomes:
  • Delayed implementation by at least two years
  • Reduced or eliminated legal exposure for companies
  • Amendments to protect SMEs from excessive data requests

The final draft of the Omnibus Simplification Package remains under debate, and its full impact will only be known once it is released in February. However, the changes it introduces could significantly reshape the international landscape for sustainability reporting and have far-reaching implications for businesses.