Omnibus: relaxing European sustainability legislation: what are the possible changes and what steps can I take in sustainability?

The European Commission presented the Omnibus simplification package on 26 February 2025. 
This package proposes relaxations in sustainability legislation such as the CSRD, CSDDD and the EU Taxonomy. The proposal focuses on achieving the Green Deal (meeting Europe’s climate targets) in a way that strengthens the EU’s competitiveness and keeps the administrative burdens on businesses proportionate. 

On 26 March 2025, the European Council agreed to the proposal for postponing reporting, the “stop the clock proposal”. The European Parliament will vote on this in the near future. The rest of the Omnibus Simplification Package (the “Content Proposal”, p.4) is yet to be formally approved by the European Council and the European Parliament. This decision is expected to be taken by the end of 2025. 

What are the most important changes? 

• Approximately 80% of companies no longer have CSRD reporting obligations 

• The CSRD reporting requirement will be postposed by two years 

• The EU Taxonomy will be relaxed 

• Due diligence (CSDDD) will be simplified 

What does this mean for your business?

If these relaxations come into effect, it could have a major impact on your business. A lot is still unclear and we understand that you have questions. Will you still be required to file reports according to CSRD? If not: how will you handle the preparations for the CSRD that you have already done, such as the double materiality analysis? What questions can you still expect from your major customers about your sustainability performance? 

Mandatory or voluntary reporting? 

With the Omnibus proposal, the European Commission recognises the challenges entrepreneurs face in implementing the new sustainability directives. This proposal gives companies more time to prepare properly. 

In addition, the European Commission calls on companies outside the scope of CSRD to file voluntary reports according to the VSME standards. With this, you can easily answer questions from your business relations about your sustainability performance, and are well prepared for future legislation and regulations around sustainability reporting.  

Questions? Download our factsheet

To answer your questions about Omnibus and help you determine the right next steps for your company, Baker Tilly ESG Advisory has prepared a factsheet. With this factsheet, you can easily map your own situation, see the different options you have for your sustainability report, and get practical guidance on actions you can take before the end of the year. 

The legislation and regulations in this area may be subject to change. We recommend that you discuss the potential impact of this with your Baker Tilly advisor.