Will CSRD and CSDDD Be Postponed? What the Omnibus Regulation Means for ESG Compliance.
When the Corporate Sustainability Reporting Directive (CSRD) was adopted in 2022, many businesses expressed concerns about the challenges of transitioning to stricter EU regulations. Now, the Omnibus Regulation is set to address these concerns by adjusting and potentially reducing the compliance burden for CSRD, the Corporate Sustainability Due Diligence Directive (CSDDD), and the EU Taxonomy.
Expected to be released on February 26, 2025, this regulation could simplify compliance, reduce administrative burdens, and provide greater clarity for businesses operating in the EU. But what exactly does it mean for your company? Who will be affected? And how should businesses prepare?
What Is the Omnibus Regulation?
The Omnibus Regulation is an upcoming legislative proposal from the European Commission, designed to streamline and simplify existing EU sustainability reporting requirements.
🔹 It aims to reduce administrative burdens by aligning multiple reporting obligations.
🔹 It focuses primarily on CSRD, CSDDD, and the EU Taxonomy.
🔹 Businesses may see adjustments in reporting deadlines, scope, and compliance expectations.
Understanding CSRD, CSDDD & EU Taxonomy
CSRD – Corporate Sustainability Reporting Directive
✔ Expands ESG reporting requirements, replacing the NFRD (Non-Financial Reporting Directive).
✔ Requires detailed disclosures on climate, social, and governance impacts.
✔ Applies to Large companies, listed SMEs and certain non-EU companies.
CSDDD – Corporate Sustainability Due Diligence Directive
✔ Focuses on corporate accountability in value chains.
✔ Requires businesses to identify, prevent, and mitigate environmental and human rights risks.
✔ Affects large EU and non-EU companies with significant turnover in the EU.
EU Taxonomy
✔ A classification system defining what qualifies as environmentally sustainable activities.
✔ Helps businesses and investors align with EU climate goals.
✔ Companies under CSRD must report on their alignment with the Taxonomy.
How Is the Omnibus Regulation Decided?
Like all major EU regulations, the Omnibus Regulation follows a structured decision-making process involving multiple institutions.
1. Drafting & Proposal (European Commission)
- The European Commission prepares and publishes the proposal (Expected: Feb 26, 2025).
- Experts, stakeholders, and policymakers provide input.
2. Review & Amendments (European Parliament & Council of the EU)
- The European Parliament (representing EU citizens) and the Council of the EU (representing member states) review the proposal.
- They suggest amendments and negotiate changes.
3. Approval & Finalization
- Both institutions must agree on the final version.
- If disagreements arise, further negotiations take place.
3. Adoption & Implementation
- Once approved, the regulation becomes legally binding across the EU.
- Companies must comply within the set timeline.
Who Will Be Affected by Omnibus?
The Omnibus Regulation might impact a broad range of companies, including:
✔ Large Corporations: Companies already subject to CSRD and CSDDD will Will potentially see changes in their reporting obligations.
✔ Small and Medium-sized Enterprises (SMEs): Around 31,000 SMEs (especially small mid-caps) may benefit from simplified reporting and reduced compliance burdens.
✔ Non-EU Companies: Firms outside the EU but operating in the EU market may also need to align with the revised reporting standards.
What’s Next? How Should Businesses Prepare?
🔹 Stay Informed:
Follow updates on the Omnibus Regulation’s progress to anticipate compliance changes.
🔹 Assess Your ESG Reporting Process:
Identify areas where reporting adjustments may be needed.
🔹 Seek Expert Guidance:
Partner with ESG experts (like CEMAsys) to ensure compliance with upcoming regulations.
Want to stay ahead of ESG reporting changes? Contact CEMAsys for expert insights and compliance support!
CEMAsys final thoughts
A Pause? No. A Wake-Up Call.
In recent weeks, we’ve seen growing concerns about the EU Omnibus Regulation—with businesses questioning their next steps and uncertainty creeping in. Some even see this as an excuse to slow down or pause their CSRD reporting.
But should companies stop? Absolutely not.
Yes, the announcement has caused frustration. But let’s be clear: sustainability isn’t waiting, and neither should you. Regulatory shifts may adjust timelines, but the long-term direction remains unchanged—businesses must move toward greater transparency, accountability, and action.
At CEMAsys, we see this moment as an opportunity for leadership, not hesitation. Companies that stay the course now will shape the future—not struggle to catch up later.
Instead of waiting, use this time to refine your ESG strategy, optimize your reporting process, and strengthen compliance readiness. With our SaaS solutions and expert consulting, we help businesses simplify reporting, reduce complexity, and stay ahead—regardless of regulatory shifts.
Don’t pause—prepare. Let’s move forward, together.
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