The Omnibus I Directive proposal introduces changes to the Corporate Sustainability Reporting Directive (CSRD), with the goal of simplifying and easing the reporting burden for companies.
The Omnibus Package is a proposal by the European Commission, published in February 2025, aiming to amend already adopted sustainability legislation. The Omnibus I Directive proposal introduces changes to the Corporate Sustainability Reporting Directive (CSRD), with the goal of simplifying and easing the reporting burden for companies.
On April 3, 2025, the European Parliament adopted the "Stop the Clock" Directive through a fast-track procedure, postponing the reporting obligations for second- and third-wave companies by two years:
For now, the deferral of reporting obligations has the most significant impact on second- and third-wave companies, as other proposals are still in the legislative process.
Key changes to the scope of sustainability reporting
In addition to the “Stop the Clock” Directive, the Omnibus Package proposes changes to both the scope and content of sustainability reporting. On June 23, 2025, the Council of the European Union adopted its position on simplifying the regulation, largely aligning with the Commission’s previous proposal.
According to the Council’s proposal, reporting obligations would only apply to companies that meet both of the following criteria:
Raising the scope threshold would reduce the number of companies subject to reporting obligations by approximately 75–80%.
Furthermore, Member States would be allowed to exempt companies with 500–1,000 employees from the obligation until the end of 2026.
These changes are not yet final, as they still require approval from the European Parliament. The final form of the legislative amendments is expected by late 2025 or early 2026.
Additionally, the Council included a review clause in the regulation, enabling future reconsideration or expansion of the scope to ensure the availability of sufficient sustainability data.
Implications of the Omnibus Package
A large number of companies will, at least for now, remain entirely outside the scope of the CSRD and will not be required to publish a sustainability report.
Companies not covered by the CSRD are recommended to report in accordance with the VSME standard.
The Omnibus Package also emphasizes that sustainability data requests should be made in the format and scope of the VSME standard, which lightens the burden on smaller companies. According to the Commission’s proposal, data requests to value chain companies with fewer than 1,000 employees would be limited to the information defined in the VSME report.
Simplifying Sustainability Reporting Standards
In addition to the Omnibus Directive proposal, the sustainability reporting standards (ESRS) are also being simplified. At the request of the Commission, EFRAG has initiated the simplification process and published a report on June 20, 2025, outlining planned changes. The goal is to reduce the number of mandatory data points by 66%, using the following six measures:
Voluntary CSRD reporting is also an option
Even if CSRD reporting is not mandatory for a company, adopting it voluntarily can bring clear benefits. It improves transparency, addresses the information needs of stakeholders, and supports access to financing. At the same time, it helps identify development areas in sustainability efforts and makes results more concrete.
Improving business practices through sustainability often also leads to direct savings, such as reduced energy use and improved employee productivity.
Voluntary CSRD reporting can also strategically support a company’s sustainability efforts. Through reporting, a company can identify its material sustainability topics and systematically set clear indicators and targets. This enhances the practical management of sustainability and enables monitoring, comparability, and continuous improvement.
A well-structured reporting process also serves as a management tool. By reporting or preparing for CSRD-aligned reporting now, companies can anticipate and adapt to possible future tightening of sustainability reporting requirements.
How Sustashift Supports You Through Omnibus
Interested?
Contact Sustashift, and we’ll help you choose and implement the reporting solution that best fits your company’s situation.
