EU Omnibus potential simplification package overview

The European Commission will publish the first of its Omnibus Simplification Package on February 26, 2025. The primary objective is to reduce reporting obligations by 25% across key sustainability frameworks, including CSRD, Taxonomy Regulation, and CSDDD. This initiative is part of the EU’s Competitiveness Compass and aims to streamline compliance while maintaining high ESG standards. The package’s scope may extend beyond its initial focus, driven by multiple factors such as pressure from Member States, insights from the Draghi Report highlighting regulatory complexity, and the Budapest Declaration’s mandate for a 25% reduction in reporting burdens. A significant aspect of the package is the introduction of a “small mid-cap” category. Approximately 31,000 out of 50,000 CSRD-scope companies are expected to fall into this new category, though specifics on deferrals or simplified provisions remain unclear.

Recommendations and timeline

Organisations are recommended to continue their Double Materiality Assessment (DMA) preparations, as baseline ESG disclosures will likely remain mandatory. Companies should closely monitor developments, particularly the draft to be released on February 26. The final package text is expected in Q3 2025, following EU Parliament and Council negotiations beginning in Q2 2025.

Strategic implications and future outlook

As organisations track omnibus developments and prepare for what’s next, it’s crucial to recognise that sustainability disclosure is here to stay, creating a level playing field that requires transparency and standardisation. Any shift in compliance deadlines or scope coverage should be viewed as an opportunity to prepare strong disclosures and create a competitive advantage over peers. Additionally, being CSRD-ready will ensure that companies are well-prepared for other emerging sustainability disclosure regulations across jurisdictions globally, potentially improving their reputation, competitive advantage, and position as a preferred partner or vendor in the marketplace.

How Nexio Projects can help

Adapting to the CSRD’s stringent requirements may seem overwhelming, but expert support can make the process seamless. Nexio Projects, a leading consultancy, specialises in helping companies conduct double materiality assessments and prepare for CSRD compliance. Whether you need guidance on reporting strategies or a partner to navigate this transition, Nexio Projects is here to help. Get in touch today to take the first step toward transparent and impactful sustainability reporting!

Etymology lesson of the day: The term “omnibus” originates from Latin, specifically meaning “for all”. It was first introduced in 1829 as a reference to a public transportation vehicle. The word is derived from the Latin word “omnibus”, which is the dative plural of “omnis” meaning “all. ¹

¹ Online Etymology Dictionary (2019) ‘omnibus’, in Online Etymology Dictionary. Available at: https://www.etymonline.com/word/omnibus (Accessed: 04 February 2025).