If the European Commission's latest proposal becomes reality, it could mean big changes in the field of sustainability. The omnibus aims to reduce the administrative burden, while maintaining the green transition. But what does the proposal mean in practice? Our ESG experts Cecilia Almér and Anna Lindstedt explain what it means.
First, it is important to underline that Omnibus is still a proposal from the European Commission. The current sustainability legislation applies. In addition, it is not yet clear how and when the proposal will be adopted.
The main changes
If the Omnibus proposal in its current form becomes a reality, it would mean a number of major changes related to sustainability legislation - specifically regarding CSRD, CSDDD and the EU taxonomy. What are the main changes proposed?
CSRD
- Pause in implementation: For those who have not started reporting, it is 2 years, to give time to review other proposals.
- Fewer companies are proposed to be covered. Thresholds for who should be covered by the CSRD are proposed to be changed to >1,000 employees and a turnover of over €50 million or a balance sheet total of over €25 million.
- Reduced reporting requirements. Reduction of the number of data points and clarification and alignment of requirements. Sector-specific standards are removed and companies are given more time to adapt.
- Voluntary sustainability reporting. With fewer companies affected by the legal requirement, the European Commission expects that many companies will report voluntarily.
CSDDD
- Bringing forward the timetable. The deadline for transposition is moved forward to 2028.
- Relaxation of due diligence requirements. Full due diligence requirement changed to direct business partners (Tier 1), except in case of information on adverse downstream effects. And the obligation to terminate business relationships as a last resort is removed.
EU taxonomy
- Simplification. Simplifying the reporting templates, leading to a reduction of data points by almost 70%.
In summary, this means fewer companies under the legal requirements, simplified reporting and an increased possibility for voluntary reporting.
Sustainability - still business-critical
The Omnibus is part of the EU's commitment to reduce administrative burden, increase competitiveness while maintaining and achieving the ambitious targets of the Green Deal. Sustainable transition remains a strategic and business-critical issue. The driving force for reporting is shifting from compliance to being driven by the market.
Companies that integrate sustainability into their business models will continue to stay ahead of the curve, regardless of regulatory adjustments. Acting strategically and data-driven will be more important than ever, also in light of the Omnibus proposal.
Cecilia Almér, ESG Lead at Stratsys, emphasizes how important it is to have a long-term perspective:
- Even if regulatory requirements change, sustainability issues continue to impact competitiveness. Companies that integrate sustainability strategically create long-term business value.
Cecilia Almér, ESG lead at Stratsys
Anna Lindstedt, expert on sustainable value chains, emphasizes the importance of having reliable data going forward:
- Reliable and traceable data will continue to be a key for both compliance and strategic business decisions. There is a strong demand for smart solutions that reduce the administrative burden, also in the future.
Anna Lindstedt, ESG Supply Chain Lead at Stratsys
At Stratsys, we are of course following the development of Omnibus closely. And we will continue to support companies in navigating the changing regulatory landscape. Do you have questions about Omnibus and its impact on your business? Please get in touch.
