On February 26, the European Commission (EC) presented the Omnibus legislative package, aimed at reducing the administrative burden on companies related to sustainability reporting. Sustainability reporting under the Omnibus package enables companies to comply with regulations more easily by reducing bureaucracy and providing a clearer framework for reporting on environmental and social impacts of their operations.
The package Omnibus includes amendments to:
- the Corporate Sustainability Reporting Directive (CSRD),
- the Corporate Sustainability Due Diligence Directive (CSDDD),
- the EU Taxonomy, and
- the Carbon Border Adjustment Mechanism (CBAM).
The EC seeks to maintain the goals of the European Green Deal while easing reporting requirements, particularly for small and medium-sized enterprises (SMEs). Therefore, the target is to reduce the administrative burden for companies by 25% and for SMEs by 35% by the end of the current mandate.
Key changes in the Omnibus package for sustainability reporting
- Changes to CSRD
- Firstly, the Omnibus narrows the scope of companies subject to CSRD and delays implementation by two years.
- Instead of a broad scope, reporting obligations will now apply only to companies with more than 1,000 employees and €50 million in revenue or €25 million in total assets.
- As a result, this change will remove approximately 80% of companies from CSRD requirements.
- The number of required data points will be reduced, with a focus on quantitative indicators rather than lengthy narrative reports.
- Adjustments to the EU Taxonomy
- Companies not covered by CSRD will be allowed to voluntarily report under the EU Taxonomy.
- The Omnibus significantly reduces reporting requirements, including a 70% reduction in reporting templates and simplification of the “Do No Significant Harm” (DNSH) criteria.
- The EU will introduce a financial materiality threshold for Taxonomy reporting.
- Postponement of CSDDD Implementation
- The largest companies will now have to comply with CSDDD starting in July 2028.
- Due diligence obligations will apply only to direct business partners, with assessments required every five years instead of annually.
- Large companies will have limited ability to request information from SMEs within their value chains.
- The legislators have removed certain liability provisions and “last resort” measures from the original proposal.
- Changes to CBAM
- SMEs, including small importers, will be exempt from CBAM requirements.
- Authorization rules, CBAM obligations, and embedded emissions calculations will be simplified.
- Stronger measures will be introduced to prevent circumvention and abuse of CBAM rules.
- The EC plans to propose an expansion of CBAM’s scope in early 2026.
Next steps related to the Omnibus package
The EU Council and the European Parliament must approve these changes for them to take effect.
The EC urges a swift adoption to provide companies with legal certainty and sufficient time to adjust. Additionally, amendments to EU Taxonomy reporting are open for public consultation until March 26.
Conclusion
The Omnibus package introduces significant changes that simplify and streamline sustainability reporting across the EU. While the overall goal remains aligned with the European Green Deal, companies—especially SMEs—will benefit from clearer, more manageable requirements.
Navigating these evolving ESG regulations requires not only awareness, but also strategic adaptation. At Unija ETL Consulting, our experts support businesses in aligning with EU sustainability standards, from CSRD and EU Taxonomy compliance to ESG strategy development and reporting.
Learn more about our ESG & Sustainability services and let us help you turn regulatory obligations into opportunities for long-term growth and impact.
