EU Omnibus Package: EU Commission plans changes to sustainability reporting

On 26 February 2025, the European Commission published significant proposals to simplify sustainability reporting. These adjustments primarily affect the Corporate Sustainability Reporting Directive (CSRD) and Article 8 of the Taxonomy Regulation. The aim is to reduce reporting obligations for companies and streamline processes.

As part of its “Omnibus Package”, the EU Commission has proposed two directives to amend requirements for sustainability reporting and corporate due diligence. The proposed measures introduce significant relief for companies, explain the Ecovis advisors.

Key changes at a glance

• Reduction of the scope: Companies will only be required to submit sustainability reports if they have more than 1,000 employees and either an annual revenue exceeding EUR 50 million or a balance sheet total of more than EUR 25 million. This change reduces the number of affected companies by approximately 80%.
• Limitation on value chain reporting: Companies no longer falling under the CSRD requirements will be encouraged to follow a voluntary reporting standard based on the SME standards developed by European Financial Reporting Advisory Group (EFRAG).
• Revision of ESRS (European Sustainability Reporting Standards): The number of data points will be reduced, unclear wording will be revised, and consistency with other regulations will be improved.
• Elimination of sector-specific reporting standards: The European Commission plans to revoke its authority to introduce sector-specific standards.
• Limited assurance requirement: While the requirement for sustainability reports to be audited with limited assurance remains, plans for a future stricter “reasonable assurance” requirement will be abandoned.
• Postponement of reporting obligations: Companies that have not yet begun implementing the CSRD will receive an additional two years for compliance.
• Elimination of Article 8 taxonomy reporting requirements: Taxonomy reporting will become voluntary for companies with more than 1,000 employees and annual revenue below EUR 450 million.

Please contact us if you are not sure whether the new regulations also apply to you.

Thilo Marenbach, Auditor, Tax Advisor, Sustainability Auditor (IDW), Board of Directors, Ecovis, Düsseldorf, Germany

Background and next steps

The proposed changes were already announced in the EU Commission’s 2025 work programme as part of a comprehensive “Omnibus Package.” The legislative process is now underway in the European Parliament and the Council.

The newly published proposals are expected to provide significant relief, particularly for mid-sized companies that have not yet engaged with sustainability reporting or the implementation of the CSRD.

For further information please contact:

Thilo Marenbach, Auditor, Tax Advisor, Sustainability Auditor (IDW), Board of Directors, Ecovis, Düsseldorf, Germany
Email: thilo.marenbach@ecovis.com