Omnibus simplification package (CSRD, CSDDD)
European Commission proposal sharply reducing the number of companies subject to sustainability reporting and due diligence duties, just months after they took effect.
The Omnibus simplification package, presented by the European Commission on February 26, 2025, proposes substantially narrowing the scope of the CSRD sustainability reporting directive and the CSDDD due diligence directive, by raising the employee-count and turnover thresholds that trigger the obligation. The proposal comes against a political backdrop shaped by the Draghi report on European competitiveness and by competing pressures, particularly from the United States, denouncing what is portrayed as a disproportionate regulatory burden on European companies. For insurers, who were among the largest issuers of CSRD reports in their first year of application in 2024, this retreat creates uncertainty over the timeline and exact scope of upcoming obligations, even as ESG data collection systems had already been built to comply with the original text. The proposal does not scrap the principle of sustainability reporting, but cuts the number of companies covered by roughly 80 percent, illustrating a regulatory retrenchment after a phase of rapid expansion of European climate obligations between 2022 and 2024.
On February 26, 2025, the European Commission presented the Omnibus package, which proposes reducing the number of companies subject to the CSRD from roughly 50,000 to fewer than 10,000, by raising the employee threshold from 250 to 1,000 staff.
Omnibus package, CSRD Omnibus 2025, Omnibus simplification
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