The European Commission is planning comprehensive simplifications to companies’ sustainability reporting obligations. These changes, known as the omnibus packages, are intended to reduce bureaucracy and relieve the burden on small and medium-sized enterprises (SMEs) in particular. The amendments concern the Sustainability Reporting Directive (CSRD), the Taxonomy Regulation (EU Tax-VO), the Due Diligence Directive (CSDDD) and the Carbon Border Adjustment Mechanism (CBAM).

An overview of the most important changes

New scope of application of the Sustainability Reporting Directive CSRD

  • Companies now only have to report if they have at least 1000 employees and an annual turnover of 50 million euros or a balance sheet total of 25 million euros.
  • The reporting obligation is postponed by two years (until 2028).
  • 80% of companies are exempt from the reporting obligation.

Adjustments to the EU taxonomy

  • Focus on large companies: SMEs are exempt from most requirements.
  • The number of reporting forms is reduced by 70 %.
  • The most important environmental criteria are simplified.

Reduced due diligence requirements (CSDDD)

  • Liability risks are reduced: Civil liability is limited.
  • Companies only have to check their business partners every five years (instead of annually).
  • Fewer obligations for SMEs: Reduced requirements for passing on information along the supply chain.

Changes to the CO2 border adjustment mechanism (CBAM)

  • Small importers (up to 50 tonnes per year) will be exempt.
  • Administrative burden for companies that remain subject to CBAM will be reduced.
  • Protection against circumvention and abuse will be strengthened.

Direct effects of the reform

With the omnibus packages, the EU is aiming to reduce the administrative burden by 6.3 billion euros. In addition, 50 billion euros in new investments are to be mobilised. The focus is on strengthening companies, securing their international competitiveness and promoting sustainable investment at the same time.

When will the changes come into force?

The proposals are being discussed in the European Parliament and the Council. As soon as an agreement has been reached and the changes have been published in the EU Official Journal, they will officially enter into force.

Sources: GTAI (in German), European Commission, Omnibus I, Omnibus II