On February 26, 2025, the European Commission published the Omnibus proposal, outlining significant changes to the Corporate Sustainability Reporting Directive (CSRD) and the EU Taxonomy. While nothing has officially changed yet, businesses should prepare for potential regulatory updates across Europe before the end of 2025. At Future Planet, we’ve analysed the key elements of the Omnibus proposal and are here to help companies understand what it means for their sustainability strategies.

Key Changes in the Omnibus proposal

IROs, The proposal outlines several important updates for businesses, particularly those concerned with CSRD compliance:

• Broadened Scope: CSRD will now apply to companies with over 1000 employees (previously 250) AND either revenue exceeding €50 million OR a balance sheet value over €25 million.
  
  
• Sector Standards Removed: Instead of sector-specific standards, companies will adhere to general standards.
  
  
• Limited Assurance: There’s a proposed restriction on assurance to "Limited Assurance" only, with targeted assurance guidelines to be issued by 2026.
  
  
• Voluntary EU Taxonomy: Companies with revenue below €450 million will be able to opt in voluntarily to the EU Taxonomy framework.
  
  
• Reduced Reporting Burden: The number of ESRS (European Sustainability Reporting Standards) data points will be reduced, with a lesser emphasis on narrative disclosures.
  
  
• Extended Reporting Deadline: Companies who have not yet reported may have the deadline postponed by two years.
  
  

What This Means for Businesses

While these proposed changes are still in the early stages and must go through multiple rounds of discussions within the European Parliament and Council, companies should be aware of their current CSRD obligations and remain vigilant about the potential regulatory shifts in the coming months.

Future Planet’s Perspective: Compliance vs. Strategy

Compliance Focus

For companies viewing CSRD compliance as a legal obligation, these proposed changes, if adopted, may provide some relief. However, until the legislative process concludes — likely over the next six to nine months— businesses must continue meeting their current legal obligations. If you are set to report in 2026 on 2025 data, it's wise to stay the course and keep your compliance efforts aligned with existing regulations.

Strategic Focus

At Future Planet, we believe the CSRD process offers more than just compliance. It presents an opportunity to engage in strategic planning by analysing how climate change and social shifts impact your business. Companies that embrace the Impacts, Risks, and Opportunities (IROs) framework and conduct a Double Materiality Assessment are better positioned for long-term resilience and competitive advantage.

The Omnibus proposal, by reducing the burden of compliance and assurance, allows businesses to allocate more resources to strategic initiatives that drive value. Rather than focusing solely on compliance, investing in sustainability strategies can yield significant returns, including improved stakeholder relations, investor confidence, and employee satisfaction.

Why strategic investment trumps compliance

Sustainability leaders recognize that long-term success comes from investing in initiatives that align with broader sustainability goals. By integrating sustainability into the core of business strategy, companies can outperform competitors who focus only on regulatory compliance. Customers, investors, and employees alike value companies that are committed to sustainable performance.

Key takeaways for businesses

Risks related to ESG factors can have a profound impact on a company’s financial performance and long-term viability. By understanding the risks, companies can:

• The Omnibus Bill is still a proposal: No immediate changes are required, but businesses should prepare for potential updates.
  
  
• Stay on track with CSRD: The framework remains valuable for long-term business planning and strategic growth.
  
  
• Focus on IROs: Analysing Impacts, Risks, and Opportunities through the Double Materiality lens is crucial for building resilience.
  
  
• Stakeholder expectations remain high: Regardless of regulatory changes, companies should continue managing their environmental and social impacts to meet stakeholder expectations and maintain competitive advantage.
  
  

Future Planet: Your partner in sustainability

For forward-thinking companies, ESG presents significant opportunities to enhance their competitive edge. By proactively identifying and acting on these opportunities, businesses can:

• Innovate new products that cater to the growing demand for sustainable alternatives.
  
  
• Optimise resource use, reducing costs and improving operational efficiency.
  
  
• Strengthen stakeholder relationships by demonstrating transparency and leadership in sustainability efforts.
  
  

From expanding into new markets to embracing renewable energy solutions, companies that embed ESG into their long-term strategies can unlock growth opportunities while contributing positively to society and the planet.

Frequently Asked Questions (FAQs)

Here are some FAQs related to the Omnibus:

What is the CSRD Omnibus proposal?

The CSRD Omnibus proposal outlines changes to the Corporate Sustainability Reporting Directive (CSRD) and EU Taxonomy, including broader company eligibility and reduced reporting requirements.

Which companies are affected by the proposed changes?

The proposal increases the employee threshold from 250 to 1000 employees, while maintaining criteria for revenue over €50 million or a balance sheet value over €25 million.

What are examples of ESG-related impacts?

ESG impacts can include environmental damage such as pollution or resource depletion, social issues like labor practices or community relationships, and governance challenges such as ethical decision-making and regulatory compliance.

What are the main changes to CSRD reporting?

Key changes include removing sector-specific standards, limiting assurance to "Limited Assurance," reducing the number of data points, and postponing reporting deadlines for some companies.

Will EU Taxonomy become mandatory?

No, under the proposal, companies with revenue below €450 million can opt-in voluntarily to the EU Taxonomy framework.

When will these changes take effect?

The Omnibus proposal is still under review and may be adopted by the end of 2025, following multiple rounds of negotiation in the European Parliament and Council.

Conclusion

Your purpose should remain focused on the strategic benefits to all your stakeholders of improved sustainable performance. You will gain competitive advantage as customers choose you over less responsible performers. Your investors will be reassured knowing that you have a handle on the Impact, Risks and Opportunities in your business, and your employees will be happier and proud to be working in a company that has a holistic perspective on its purpose and its sustainability in the medium and long term.

We founded Future Planet to help companies improve how they engage with all of their stakeholders, (including the planet) while they accelerate the sustainable performance of their business. We are proud of the customers we work with today and of what they have achieved with our support. We are uplifted by their focus on strategic change with compliance as an outcome, and we’re looking forward to remaining as fellow travellers on that journey.

How can Future Planet help?

Future Planet is the platform that accelerates your ESG performance. From Double Materiality Assessments to CSRD, to carbon accounting and transition planning, we accelerate impact and compliance. 

For expert guidance, contact Future Planet today by emailing eva@futureplanet.com.