Omnibus – What does this mean for your CSRD program?
The European Commission wants to ease the reporting obligation for the CSRD, but sustainability oversight remains critically important.
In February 2025, the European Commission presented an amendment proposal for the CSRD, CSDDD, and EU Taxonomy: the ‘Omnibus Directive’. This proposal suggests simplifying the regulations as part of a broader strategy to reduce administrative burdens. In the ‘Competitiveness Compass,’ the Commission describes the ultimate goal of giving European companies more room for innovation. But what is the value of this proposal, and what does it mean for your ESG program? We explain it here.
One of the most notable parts of the proposal is that the CSRD obligation will apply to companies with more than 1,000 employees and a turnover of 50 million or a balance sheet total of 25 million. Additionally, the Commission proposes a ‘stop-the-clock’ to give reporting companies two more years to comply. This means that companies due to report in 2025 would now report in 2027.
The European Commission, as the legislative body, has the initiative to propose laws to the European Parliament and the European Council. Over the next few months, negotiations will take place regarding the final content. The political process is now starting, and the future of this proposal remains uncertain.
We understand that our clients want clarity on this obligation, especially now that many have already invested time and resources into it. We stand alongside them in this process and emphasize that the importance of structured reporting and oversight of ESG topics remains high. This is not only necessary for compliance but also addresses the questions coming from stakeholders.
“The CSRD […] aims to ensure that investors and other stakeholders have the information they need about the impacts of companies on people and the environment.” – COM(2025) 81 final, p.1
We advise companies to continue with their preparations for the CSRD. This brings several advantages:
- You are prepared for a rejection or weakening of the Omnibus proposal, as the CSRD remains law until there is clarity.
- You reduce ESG risks for your organization by converting the materiality analysis into concrete policies and actions.
- You seize the opportunity to integrate ESG into your annual report and provide your stakeholders with insight into your key ESG topics.
So, finish your double materiality analysis to get an overview of the most important ESG topics for your organization. Write policies and collect quantitative data on these, which will form the foundation of a solid sustainability report. This provides the basis for your stakeholders’ questions and regulatory requirements. Finally, take the opportunity to link actions to this: what goals will you tie to the most important topics, and what measures can contribute to achieving them?
SmartTrackers helps with this: staying on course with your most important sustainability topics, even in the changing world of obligations and expectations. This has been and remains the foundation of how we have supported our clients for 15 years: action-oriented ESG management. With SmartTrackers, you stay flexible and can anticipate the changing ESG demand.
If you have any questions in the meantime, feel free to email our CSRD expert Greg!