The EU Commission is planning a far-reaching simplification of sustainability reporting. The Omnibus Directive is expected to be adopted on February 26, 2025, but has not yet been finally confirmed. It provides for a reduction in reporting obligations of up to 35% for SMEs and 25% for large companies. But what does this mean for companies in concrete terms? What adjustments are required, and how can companies best prepare for them?
Why was the Omnibus Initiative launched?
The initiative is part of the “Compass for Competitiveness”, with which the EU aims to reduce the regulatory burden on companies without jeopardizing sustainability goals. Particularly affected are the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD) and the EU taxonomy. The aim is to optimize information obligations, give companies more flexibility and at the same time provide investors with relevant data.
Less bureaucracy, more efficiency: the key points of the omnibus procedure
- Reduction of reporting obligations: Companies should be relieved of less complex and redundant reporting requirements.
- New category “small mid-caps”: Companies between SMEs and large companies receive specific, simplified reporting obligations.
- Adaptation to investor needs: Sustainability information is to be made more targeted.
- Preventing the “trickle-down effect”: Smaller companies in the supply chain should not be burdened by indirect reporting requirements.
What does this mean for companies? Opportunities and challenges
Although the planned changes offer relief, they require a strategic adjustment of reporting. Companies should check this:
- Which reporting obligations are specifically eliminated or changed.
- Whether internal processes for data collection and analysis need to be optimized.
- How existing reporting systems can be adapted to the new requirements.
Digital solutions are playing an increasingly important role: companies can use modern analysis and monitoring tools to identify new regulations at an early stage. This makes reporting processes more efficient and legal requirements easier to meet. We support companies in keeping an eye on these changes, automating reports and identifying risks at an early stage.
Expert opinions on the Omnibus Directive: opportunities and concerns
Opinions on the omnibus initiative differ. Supporters praise the planned simplifications, which should reduce the burden on companies and enable more efficient reporting. This could be a considerable relief for SMEs in particular. Critics, on the other hand, warn that an excessive reduction in reporting obligations could make it more difficult to compare sustainability data. This could result in less transparency for investors, which could have a negative impact on sustainable financing decisions in the long term.
In addition, it remains unclear whether the new rules will actually bring noticeable relief or whether companies will face new bureaucratic challenges as a result of the restructuring of reporting. Precise implementation and clear guidelines will be crucial in order to realize the desired benefits.
Conclusion: How companies can benefit from the initiative
The Omnibus Directive represents an important step towards reducing the burden on companies. However, despite simplifications, sustainability reports remain a central component of corporate strategy. Companies should:
- Analyze the new regulations in detail and adapt internal processes accordingly.
- Use digital reporting solutions to ensure efficiency and compliance.
- Using data-based tools to ensure that regulatory developments are continuously monitored.
We help companies to optimize reporting processes and prepare for regulatory requirements with foresight. With a smart data strategy, companies can not only save time and money, but also future-proof their sustainability reporting.
Would you like to find out more? Please contact us directly, we will be happy to help you!
