Omnibus initiative: EU Commission publishes drafts to simplify the CSRD, EU taxonomy and CSDDD

published on 18 march 2025 | reading time approx. 3 minutes

As announced, the EU Commission presented the first omnibus package on sustainability reporting on February 26, 2025. The aim of the initiative is to significantly reduce bureaucracy in order to strengthen the competitiveness of European companies.

The draft provides for the following key changes to the existing regulations on sustainability reporting:

Postponement: The reporting obligation for companies that would be affected from the 2025 or 2026 financial year is to be postponed by two years in each case.
Restriction of the CSRD scope of application: Only companies with more than 1,000 employees and either a net annual turnover of at least € 50 million or a balance sheet total of at least € 25 million will be subject to CSRD reporting requirements in future. Around 80% of the companies previously affected would be exempt from the reporting obligation due to the new thresholds.
Restriction of the scope of application of the EU taxonomy: Companies with fewer than 1,000 employees and a net annual turnover of less than € 450 million are to be exempt from the reporting obligation under the EU taxonomy in future. Companies with more than 1,000 employees and a net annual turnover of less than € 450 million can submit a simplified voluntary report.
Reduction of reporting obligations: ESRS and the EU taxonomy are to be extensively revised in terms of the number, granularity and complexity of the required disclosures. The sector-specific ESRS are to be dropped completely.
Simplification of the audit: The originally planned transition from an audit of the sustainability report with limited assurance to an audit with reasonable assurance is to be dropped.
Reduction of due diligence obligations under the CSDDD: In future, due diligence obligations will only apply to direct business partners and no longer to the entire value chain.

Although the draft still has to go through the European legislative process, the planned changes already point to a noticeable reduction in regulatory requirements. At the same time, the EU Commission is emphasizing the continued high relevance of sustainability as a strategic factor for companies.

Detailed information on the omnibus package, the planned changes and implications for companies can be found in our detailed » background article.