Summary of the European Union Omnibus Simplification

Proposed changes to the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD)

Waco YOKOYAMA-LIZÉ

Senior Consultant - Sustainability Lead (Talan France)

Windmills and solar panels farm in green fields close to the ocean.

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Our Reflections

The Corporate Sustainability Reporting Directive (CSRD), Corporate Sustainability Due Diligence Directive (CSDDD), and EU Taxonomy are key EU regulations designed to drive corporate sustainability across Europe. These frameworks have played a pivotal role in embedding sustainability into corporate strategy, demonstrating the value of transparency, data-driven decision-making, and due diligence.

The European Commission has now proposed an Omnibus Regulation to align these three frameworks. However, this has resulted in a dilution of some of the initial requirements. The proposal still requires approval from the European Parliament and the Council of the European Union, but in the interim, it has raised concerns within the sustainability community. Regulatory reporting has been a strong incentive for businesses to integrate sustainability into their operations—a crucial step towards long-term transformation and impact.

While complying and preparing for CSRD has been administratively demanding, it is important to recognise that the actions required have delivered tangible business benefits. Rather than seeing this regulatory shift as a reason to scale back, forward-thinking organisations can use this as an opportunity to strengthen their sustainability strategies.

Sustainability Strategy Opportunities:

Double Materiality Assessment

A core requirement of the CSRD, this process enables organisations to identify key risks, opportunities, and impacts, ensuring they are future-proofed against financial and operational disruptions. Even if an organisation is no longer obligated to report, conducting this assessment remains a strategic advantage.

From Compliance to Action

For medium and small enterprises, compliance costs may have been significant, particularly for those already committed to sustainability. The reduced reporting burden may now allow organisations to shift focus from planning and compliance to tangible action—delivering on their sustainability goals rather than just documenting them.

Building Robust Data Infrastructure

With regulatory timelines relaxed, businesses have the opportunity to establish more flexible and scalable data systems that effectively track sustainability performance and prioritise risks requiring immediate attention.

Accelerating Decarbonisation and Impact Projects

Over the next 18 months, organisations can progress key sustainability initiatives that may have previously been delayed due to compliance pressures.

Mitigating Reputational and Compliance Risks

Despite the regulatory shift, greenwashing concerns and due diligence obligations remain. Taking proactive steps to maintain transparency and integrity will be critical in protecting brand reputation and meeting stakeholder expectations.

The proposed regulatory changes should be seen as an opportunity to focus on tangible sustainability action rather than just compliance. With reduced reporting burdens, organisations can now direct resources towards accelerating decarbonisation, enhancing supply chain sustainability, and driving measurable impact.

Whether the Omnibus is final or evolves further, it reinforces that sustainability action is the ultimate goal, with reporting serving as a key enabler. Moving forward, policy should continue to prioritise real change, and businesses that invest in strong ESG strategies will gain a competitive advantage, staying ahead of both regulatory and market demands.

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Download our full summary report.

Read our full summary of the EU Omnibus Simplification Package here.

Download the report

Summary of the European Union Omnibus Simplification

Download our full summary report.

Our Reflections

Sustainability Strategy Opportunities:

Double Materiality Assessment

From Compliance to Action

Building Robust Data Infrastructure

Accelerating Decarbonisation and Impact Projects

Mitigating Reputational and Compliance Risks

Download our full summary report.

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