Need for action due to the omnibus draft? Our expert assessment

The European Union is known for its far-reaching regulations in the area of sustainability. The administrative burden for companies is often considerable, which is why the EU Commission presented a new draft omnibus on February 26, 2025. The aim of this regulation is to reduce bureaucracy and give companies more time to implement new regulations.

The draft provides for adjustments to key EU sustainability regulations, in particular for:

• the Corporate Sustainability Reporting Directive (CSRD),
• the Corporate Sustainability Due DIligence Directive (CSDDD),
• Carbon Border Adjustment Mechanism (CBAM) and
• the EU Taxonomy (sustainability classification system)

In this article, we explain what impact this will have on companies and how they should prepare for it.

The most important changes

The most important changes in a nutshell:

CSRD:

• Deadline extension: Companies are given two additional years for implementation.
• Restricted scope: Only companies with at least 1,000 employees and either more than EUR 50 million in turnover or EUR 25 million in total assets are affected.
• Simplified reporting: The European Sustainability Reporting Standards (ESRS) are being revised and simplified.
• Double materiality remains: Companies must continue to consider both financial and sustainability-related impacts.
• No sector-specific standards: Uniform reporting for all sectors.
  No “Reasonable Assurance” required: Limited assurance only.

CSDDD:

• Later start: Implementation will not begin until 2028.
• Limited responsibility: Companies will primarily be responsible for tier one suppliers
• No liability regulation: companies cannot be held liable for violations

CBAM:

• Levies postponed: The first payments are not due until February 2027.
• Threshold for reporting obligation: Only importers with annual emissions of more than 50 tons must report.

EU taxonomy:

• Scope of application reduced: The reporting obligation now only applies to companies with a turnover of more than EUR 450 million and at least 1,000 employees.
• Optional reporting: Smaller companies can report voluntarily.
• Integration of the materiality principle: companies can assess for themselves whether their activities are relevant.

Next steps

The proposal is now going through the European legislative process. Due to the political differences between member states and stakeholders, intensive negotiations are to be expected. It remains to be seen what adjustments will be made to the final legislative text.

Our expert tip

“Despite the omnibus proposals and uncertainty, companies should not pause their sustainability transformation. Because the earlier they create structures for recording sustainable corporate aspects, the better positioned they will be in the long term.”

– Sibylle Zavala, Cluster Lead Sustainability