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BDO has released International Sustainability Reporting (ISR) Bulletin 2025/03 The European Commission’s First Omnibus - Key Proposed Changes to the CSRD.
The Bulletin provides a ‘snapshot’ of sustainability reporting developments with a focus on the first Omnibus package of proposals published by the European Commission (EC) on 26 February 2025 with the aim to simplify and streamline reporting requirements of the Corporate Sustainability Reporting Directive (CSRD), the EU Taxonomy regulation, and Corporate Sustainability Due Diligence Directive (CSDDD) while maintaining transparency and compliance that is consistent with the European Green Deal.
The proposals include changes to the scope, timing of adoption and simplifications of the CSRD, EU Taxonomy and CSDDD. The proposals have been published in two draft directives - more about this later in this publication. Ahead of the release of the first Omnibus package of proposals, in January 2025, the EC published its Competitiveness Compass for the EU, outlining plans to strengthen EU competitiveness and prosperity over the next five years. Key elements included simplifying regulations and reducing reporting burdens, with targets to cut administrative burdens by at least 25% for all companies and by at least 35% for small and medium sized entities (SMEs) through the Omnibus Package.
The Omnibus Package introduces substantial modifications to the scope of the CSRD. Consequently, many companies will no longer be obligated to comply with the CSRD. The Directive will only apply to large EU undertakings with over 1000 employees and non-EU undertakings generating more than EUR 450 million in turnover within the EU. These adjustments will reduce the number of companies within the scope by approximately 80%, thereby aligning the CSRD more closely with the CSDDD and ensuring consistency between the two pieces of legislation.
Furthermore, companies that fall outside the mandatory reporting requirements will have the option to voluntarily publish a sustainability report based on a revised version of the Voluntary SME (VSME) standard.
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The proposals include changes to the scope, timing of adoption and simplifications of the CSRD, EU Taxonomy and CSDDD. The proposals have been published in two draft directives - more about this later in this publication. Ahead of the release of the first Omnibus package of proposals, in January 2025, the EC published its Competitiveness Compass for the EU, outlining plans to strengthen EU competitiveness and prosperity over the next five years. Key elements included simplifying regulations and reducing reporting burdens, with targets to cut administrative burdens by at least 25% for all companies and by at least 35% for small and medium sized entities (SMEs) through the Omnibus Package.
Proposed changes in scope
The Omnibus Package introduces substantial modifications to the scope of the CSRD. Consequently, many companies will no longer be obligated to comply with the CSRD. The Directive will only apply to large EU undertakings with over 1000 employees and non-EU undertakings generating more than EUR 450 million in turnover within the EU. These adjustments will reduce the number of companies within the scope by approximately 80%, thereby aligning the CSRD more closely with the CSDDD and ensuring consistency between the two pieces of legislation.Furthermore, companies that fall outside the mandatory reporting requirements will have the option to voluntarily publish a sustainability report based on a revised version of the Voluntary SME (VSME) standard.