What to know: On February 26, 2025, the European Commission released a package of proposals (“omnibus package”) aimed at significantly scaling down several sustainability regulations in the European Union that are either in effect already or about to take effect. The proposals aim to reduce reporting burden for businesses by 25% (35% for small and medium entities, or SMEs) – a promise the commission’s President Ursula von der Leyen made last year.
The main regulations affected are the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD), the European Union Taxonomy Regulation (EU Taxonomy), the Carbon Border Adjustment Mechanism (CBAM), and InvestEU.
These are proposals, not a final regulatory decision. The proposals need to make their way through the review, comment and approval process and then be implemented as law in each of the EU member states. Companies should stay tuned to developments even as they prepare for compliance in the near term.
Why It Matters: If adopted, the proposals could remove many companies from scope for CSRD, while giving those remaining in scope a reduced reporting burden and more time to prepare. The proposed changes have received positive feedback from some companies and industry organizations, while also causing confusion for others and raising questions from companies well under way with their reporting preparations about what to do with their works so far.
Learn More: This Flash Report summarizes the most significant proposed changes related to CSRD, CSDDD, EU Taxonomy and CBAM, and how these changes may play out for companies across different regulatory frameworks.
