The EU Commission's Omnibus Proposal

EU Commission's Omnibus Proposal The Omnibus Proposal was presented on February 26, 2025. As the name suggests, it is a kind of comprehensive proposal that involves changes to central sustainability legislation, including sustainability reporting (CSRD and the Taxonomy) and the proposal on due diligence, CSDDD. According to the Commission, the aim has been to adapt and clarify, but the proposal also means that important requirements are lowered and postponed.

Some consequences of the proposal:

CSRD 

• Reporting requirements are limited to larger companies (at least 1,000 employees) with a certain annual turnover. 
• A "stop the clock" for 2 years for companies that have not yet started their CSRD reporting (steps 2 and 3) to give these companies more time to adapt.
• Simplified rules for sustainability reporting, which particularly benefits small and medium-sized enterprises. 
• Companies that are not yet covered can still start their transition now and voluntarily report according to a simplified standard, which the Commission will issue. 

CSDDD

• The due diligence requirements are limited to direct business partners, and not, as previously, the entire supply chain.
• Implementation is postponed by 1 year, from 2027 to 2028. 
• Compensation for damages is no longer linked to the company's turnover. 
• Extended intervals for due diligence checks, from every year to every five years.

What does this mean? 

The proposal represents somewhat of a U-turn and a reduction in ambition, leading to decreased predictability and a slowdown. This occurs within important and entirely foundational areas that have long lacked clear regulation.

At the same time, the the ball is already set in motion. Through CSRD and the proposal on CSDDD, we have received an important and clear direction that is already leading to more focused and ambitious working methods, reporting, strategies, and goals. This direction is the future for companies that want to be long-term sustainable and competitive, and we already see indications that companies that are early in their transition will continue to be important pioneers, with, for example, clear demands for sustainability data from suppliers.

The EU today has a unique opportunity to be a leader and create long-term important standards, which ultimately means security and transparency for all involved, throughout the supply chain, down to cultivation and production.

The proposal will now be reviewed by the European Parliament and the Council. We are following this development and hope that we are right in that companies continue to focus on and prioritize sustainability.

Would you like more information about the Omnibus Proposal or discuss other aspects of sustainability issues?

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