EU Omnibus package: reduced number of companies subject to CSRD

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The Omnibus package, adopted on 26 February 2025 by the European Commission, aims to simplify EU regulations on sustainability reporting. One key change concerns the CSRD directive: the reporting obligation will now be limited to companies with at least 1,000 employees and a turnover of more than EUR 50 million or assets of more than EUR 25 million. This revision excludes about 80 per cent of the companies previously affected, ensuring that small and medium-sized companies are not obliged, even indirectly through supply chains.

The package also provides for a two-year postponement of the entry into force of reporting requirements for large companies that are not yet CSRD-compliant and for listed SMEs, postponing these requirements to 2028. This additional interval gives lawmakers time to agree on the proposed changes. The Commission's goal is to reduce administrative burdens by 25 per cent and SMEs by 35 per cent by the end of the current term. The Omnibus package introduces simplifications in several areas, including sustainable financial reporting, sustainability due diligence, EU taxonomy and the carbon adjustment mechanism at the border (CBAM). It is estimated that these proposals could generate total savings of around EUR 6.3 billion in annual administrative costs and mobilise an additional EUR 50 billion in public and private investment to support policy priorities.

The main news introduced by the Omnibus package include: Approximately 80 per cent of companies will be removed from the scope of CSRD; reporting obligations for companies currently subject to CSRD, which are due to start in 2026 or 2027, will be postponed by two years, until 2028; the burden of EU Taxonomy reporting obligations will be reduced and limited to larger companies, in line with the CSDD; it will be possible to report on activities partially aligned with the EU Taxonomy. With the introduction of a financial materiality threshold for reporting on the Taxonomy, reporting templates will be reduced by around 70 per cent; complex criteria related to 'Do No Significant Harm' (DNSH) will be simplified; the Taxonomy-based key performance indicator for banks, the Green Asset Ratio, will be revised, allowing the exclusion of exposures related to companies outside the scope of the CSRD.

With regard to sustainability due diligence, the proposed changes aim to simplify the requirements for companies, focusing on direct business partners and reducing the frequency of periodic assessments from annually to every five years. It is also planned to remove the EU-wide liability requirements, while maintaining the right of victims to full compensation. The entry into force of these requirements is postponed until 26 July 2028. Under the CBAM, the package proposes exempting small importers, mainly SMEs and individuals, by introducing a cumulative annual threshold of 50 tonnes per importer. This measure will exclude about 182,000 importers, representing 90% of the total, while covering over 99% of relevant emissions. Simplifications for the remaining companies under the CBAM and measures to prevent circumvention and abuse are also foreseen.

The Commission proposes modifications to simplify the use of investment programmes such as InvestEU, increasing the EU's investment capacity by utilising returns from past investments and optimising the use of still available funds. These measures are expected to mobilise around EUR 50 billion in additional public and private investment, supporting priority policies such as the Competitiveness Compass and the Clean Industrial Deal. The legislative proposals will now be submitted to the European Parliament and the Council for evaluation and adoption. The amendments to the regulations CSRD, CSDD and CBAM will enter into force once an agreement between the co-legislators has been reached. The Commission calls for treating this Omnibus package as a priority, in particular the proposals to postpone certain disclosure requirements under the CSRD and the CSDD transposition deadline.

This article has been realised within the project "Biodiversity services EU expansion" (CUP: E43D22000480009) in the framework of the Lombardy Region's call for tenders "PR FESR 2021-2027 - LINEA INTERNAZIONALIZZAZIONE 21-27", aimed at supporting the internationalisation of Italian companies. 3Bee is the naturetech company that develops innovative technologies for monitoring, protecting and regenerating biodiversity, supporting companies in defining customised climate strategies based on the analysis of their impacts and dependencies on nature. With an established portfolio in Italy, Germany and France and prominent partnerships, 3Bee continues its expansion into international markets to create real impact through technology.