What is the EU Omnibus?

The EU Omnibus is a regulatory simplification package designed to harmonize and enhance sustainability regulations. It focuses on:

• Aligning key sustainability regulations to eliminate inconsistencies and redundancies.
• Increasing transparency by strengthening corporate disclosure requirements.
• Enhancing compliance to ensure sustainability reporting remains enforceable and effective.

While simplification sounds like a welcome change, it also means new compliance adjustments that businesses must prepare for—so now is the time to take action.

How will the EU Omnibus affect ESG reporting?

Three core sustainability regulations will be impacted:

• Corporate Sustainability Reporting Directive (CSRD)
• Corporate Sustainability Due Diligence Directive (CSDDD)
• EU Taxonomy

The major changes included in the Omnibus Simplification Package are:

The scope of companies required to report for CSRD has been reduced by about 80%:  

Before Omnibus:

• All large companies (>250 employees, >€50M turnover, or >€25M balance sheet)
• Listed SMEs on EU regulated markets
• Approximately 50,000 companies in scope
• Large companies have to report in 2026 and 2027

After Omnibus:

• Only large companies with >1,000 employees (plus either >€50M turnover or >€25M balance sheet)
• Listed SMEs removed from scope entirely
• Approximately 10,000 companies in scope
• Large companies have to report in 2028 and 2029

Value chain reporting for CSRD has been significantly reduced:

Before Omnibus:

• Companies required to obtain information from SMEs in their value chain that could exceed these SMEs' reporting capabilities
• Protection limited only to SMEs in the value chain

After Omnibus:

• "Value chain cap" introduced - companies cannot request information from entities with fewer than 1,000 employees beyond what's in the voluntary standard
• Protection extended to all companies with fewer than 1,000 employees in the value chain

Standards and reporting requirements for CSRD have been simplified:

Before Omnibus:

• Sector-specific standards planned for adoption by June 2026
• Potential move from limited to reasonable assurance requirements
• No clear voluntary standard for companies outside mandatory scope

After Omnibus:

• Sector-specific standards requirement deleted entirely
• Possibility of moving to reasonable assurance removed
• Commission to adopt a voluntary standard based on the VSME standard from EFRAG
• Commission commits to revise and simplify the existing CSRD standards

EU Taxonomy reporting requirements have been softened:

Before Omnibus:

• All in-scope companies required to report taxonomy alignment
• No flexibility for partial alignment reporting

After Omnibus:

• Companies with >1,000 employees but <€450M turnover can report taxonomy information voluntarily
• Option to report on activities that are partially taxonomy-aligned (to support transition efforts)

What does this mean for your business?

Given the rapid pace with which the Omnibus package has been introduced, it is essential for organisations to stay agile in their approach to ESG reporting. KEY ESG would advise organisations who have already begun implementing CSRD compliance processes to continue to do so. We have seen multiple examples of how double materiality assessments have revealed financial and operational business efficiencies. Companies may also benefit from a year or two’s run-rate of gathering CSRD data prior to their first report publication.

What should organisations do to prepare?

The EU Omnibus represents a major shift in ESG reporting and businesses that act now will have a competitive edge. Here’s how to stay ahead:

1. Get ahead of regulatory changes

Familiarise yourself with CSRD, CSDDD, and the EU Taxonomy to understand how the Omnibus will impact your reporting obligations.

2. Upgrade your ESG data processes

As reporting requirements evolve, data quality and accuracy will be critical. Ensure you have centralised, efficient ESG data management in place before changes take effect.

3. Invest in ESG reporting software now

With new compliance updates on the horizon, manual reporting won’t cut it. ESG reporting platforms, like KEY ESG, integrate with your existing systems to:

• Automate complex reporting processes
• Ensure real-time regulatory compliance
• Minimise administrative burden
• Enhance data accuracy and audit readiness
• Turn ESG reporting into a strategic advantage

💡Early adoption will save time, reduce compliance risks, and future-proof your business.

Stay informed & proactive

The regulatory landscape is evolving fast. Stay ahead by:

• Monitoring updates from organizations like EFRAG.
• Participating in consultations to help shape future ESG standards.
• Leveraging expert insights and resources.

As well as our regular informative blog articles, KEY ESG offers  our customers exceptional support and a huge knowledge library to help them stay informed.

Plus, as a Friend of EFRAG, KEY ESG stays ahead of regulatory shifts and ensures our customers remain compliant with the latest ESG reporting standards. We support the development of draft ESRS and contribute to the progress of corporate reporting.

Three key ways to take action

📌 Request a demo to see how KEY ESG can help you navigate the Omnibus and simplify your ESG reporting.

📌 Join our CSRD Compliance webinar delivered in partnership with Proskauer, where we’ll break down the latest Omnibus regulations and their impact on CSRD compliance across borders.

🚀 Don’t wait—regulatory changes are coming. Invest in ESG reporting software today and turn compliance into a competitive advantage.

Source:

European Commission Omnibus Simplification Package, Commission simplifies rules on sustainability and EU investments, delivering over €6 billion in administrative relief, 26 February 2025 (Link)