The European Commission would simplify sustainability reporting – what does the Omnibus package bring?

Aim of the Omnibus package

The proposals aim primarily to reduce reporting obligations, in particular for small and medium-sized enterprises (SMEs). If adopted, the amendments could reduce administrative burdens while maintaining the sustainability transformation process. One of the most important changes is the timing of reporting obligations, which would allow companies to gradually adapt to the requirements.

CSRD: Narrower scope, simpler reporting

One of the biggest changes to the Corporate Sustainability Reporting Directive (CSRD) is its narrower scope. Under the new proposal, the obligation would only apply to large companies that:

have at least 1,000 employees

and either have a net turnover of EUR 50 million

or have a balance sheet total exceeding EUR 25 million.

Voluntary reporting standards (VSMEs) will be introduced for smaller companies. Furthermore, the Omnibus provides for a two-year extension of reporting deadlines and limits the EC’s ability to introduce sector-specific standards.

EU Taxonomy: Simplification and materiality threshold

The proposed amendments would reduce the taxonomic reporting obligation for smaller companies, while a new “partial taxonomic alignment” would provide for the possibility of partially meeting the sustainability criteria. In addition, a financial materiality threshold would be introduced, reporting templates would be simplified, and the DNSH (“do no significant harm”) criteria would be modified.