The EU Omnibus Simplification Package proposes significant changes to corporate sustainability regulations, providing both opportunities and challenges. Ahead of the vote in Strasbourg on April 1st, companies should proactively manage their sustainability commitments and strategic priorities.
Sustainability remains critical for financial resilience, competitive advantage, and long-term growth. Integrating sustainability into financial and strategic planning helps businesses manage sustainability-related risks, from regulatory shifts to operational disruptions, and positions them favourably in the market.
Evaluate your company's position relative to the revised CSRD thresholds. Even if newly exempt, voluntary reporting remains beneficial for maintaining stakeholder trust and competitive differentiation.
Invest in digital solutions to streamline sustainability data management, enhancing reporting accuracy, and enabling real-time insights. Technology enhances strategic and operational efficiency.
Enhance internal governance structures and internal controls for sustainability oversight, ensuring accurate, reliable sustainability disclosures. Strong governance frameworks build stakeholder trust and readiness for potential future regulatory obligations.
If exempt from mandatory reporting, continue voluntary sustainability disclosures using recognised frameworks like GRI, ISSB, or TCFD. Demonstrating ongoing accountability and progress helps sustain market confidence and competitive advantage.
By proactively embedding these recommendations into their strategic approach, companies can effectively navigate the changing regulatory landscape, positioning themselves strongly for future sustainability compliance, competitive differentiation, and long-term success.
For forward-thinking companies, ESG presents significant opportunities to enhance their competitive edge. By proactively identifying and acting on these opportunities, businesses can:
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.
Here are some FAQs related to the Omnibus:
The CSRD Omnibus proposal outlines changes to the Corporate Sustainability Reporting Directive (CSRD) and EU Taxonomy, including broader company eligibility and reduced reporting requirements.
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.
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.
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.
No, under the proposal, companies with revenue below €450 million can opt-in voluntarily to the EU Taxonomy framework.
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.
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.