The European Commission has unveiled plans to integrate key ESG frameworks into a unified “omnibus” regulation.
According to Greenomy, this strategic initiative targets the consolidation of the Corporate Sustainability Reporting Directive (CSRD), the EU Taxonomy Regulation, and the Corporate Sustainability Due Diligence Directive (CSDDD). The primary objective behind this regulatory consolidation is to reduce the bureaucratic complexity and administrative burdens that currently weigh on businesses, thereby boosting the EU’s competitiveness.
Set for a proposal release on February 26, 2025, the omnibus regulation seeks to streamline the compliance processes without altering the core substantive obligations of the existing regulations. Despite the intent to simplify, there is an underlying concern among industry observers that the legislative process might prompt the European Parliament and Council to re-evaluate fundamental aspects such as the content of reports, application timelines, and the scope of companies covered.
Amidst these regulatory shifts, certain stakeholders have voiced apprehensions. ESG professionals highlight the risk of potentially undermining ongoing preparations and compromising data quality through a premature reduction in reporting requirements. They caution against diluting the rigour of current standards which could stifle the progress toward sustainable corporate practices.
For companies in the throes of preparing their CSRD reports, the advice is to maintain their current trajectory. The adjustments anticipated with the omnibus regulation are expected to be minor, primarily aimed at legislative alignment and easing the compliance burden for smaller entities. With the first reporting for Wave 1 firms due in January 2025 and for Wave 2 in January 2026, companies are advised to proceed unabatedly in their data collection efforts.
Greenomy, along with other proactive businesses, is closely monitoring these developments. Companies are encouraged to stay informed and continue their diligent compliance to align with the evolving regulatory landscape. As one industry expert puts it, “It’s full steam ahead. Keep doing what you’re doing to the same timeline.” This forward momentum is essential as any alterations introduced through the omnibus regulation will likely be gradual and predominantly affect smaller firms.
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