EU Omnibus Simplification Package: Streamlining ESG Reporting Requirem

What is the Omnibus Regulation?

The Omnibus Regulation aims to harmonize and consolidate ESG reporting obligations. On November 8, 2024, EU Commission President Ursula von der Leyen introduced it as part of the „Budapest Declaration on the New Deal for European Competitiveness.“ This 12-point program is designed to make the European economy more resilient and competitive.

Currently, companies must provide redundant data across various regulations, leading to significant effort. The Omnibus Regulation intends to minimize this burden by harmonizing existing regulations such as the CSRD, CSDDD, SFDR, and the EU Taxonomy Regulation. The EU Commission plans to present concrete proposals in Q1 2025, aiming to reduce bureaucratic costs by at least 25%.

Planned Changes in EU Legislation on Sustainability Reporting and Supply Chain Due Diligence

Sustainability Reporting

• Only companies with at least 1,000 employees and €450 million in revenue will be required to submit sustainability reports.

• No more sector-specific standards through delegated acts to limit the number of data points to be reported.

Changes in the EU Supply Chain Law (CSDDD)

• Due diligence obligations will be limited to:

  • The company’s own operations.

  • Subsidiaries and direct business partners.

• No longer a requirement to terminate supplier relationships due to environmental or labor law violations. Instead:

  • „Suspension“ of the business relationship with negotiations.

• Stakeholder engagement only for directly affected parties (e.g., local communities).

• Due diligence reviews required every five years instead of annually.

Liability and Enforcement Relaxations

• Removal of the rule that fines must be proportionate to company revenue.

• No unified EU liability regime – national regulations will apply instead.

• No review clause for expanding due diligence obligations to financial service providers.

Challenges of Current ESG Reporting Requirements

CSRD (Corporate Sustainability Reporting Directive)

• Expanded from the NFRD (Non-Financial Reporting Directive)

• Requires companies to disclose up to 783 ESG data points

CSDDD (Corporate Sustainability Due Diligence Directive)

• Focuses on human rights and environmental due diligence

• Requires annual supply chain reporting

• Partial overlap with CSRD

SFDR (Sustainable Finance Disclosure Regulation)

• Obligates financial market participants to disclose sustainability information

• Requires extensive disclosures at company and product levels

EU Taxonomy Regulation

• Companies must demonstrate the sustainability aspects of their business activities

• Overlaps with CSRD and SFDR

Objectives of the Omnibus Regulation

• Consolidation of reports: A single ESG report to cover all relevant requirements.

• Reduction of data points: Elimination of redundant and overlapping data.

• Unified standards: Harmonization of reporting formats and criteria.

Von der Leyen emphasized that regulatory requirements will not be weakened but made more efficient. The goal is to reduce bureaucratic costs while ensuring a robust sustainability strategy.

Impact on Companies

• Less administrative effort: Financial and personnel relief through simplified reporting.

• More clarity & transparency: Standardized requirements facilitate compliance.

• Focus on sustainability goals: Simplification without compromising environmental and social objectives.

Companies that have already invested in ESG reporting stand to benefit the most. The Omnibus Regulation signals that sustainability remains a priority, but with lower bureaucratic costs.

Preparing for the New Regulations

Although concrete proposals are expected in 2025, companies should already review their ESG strategies. Key steps:

• Analyze existing reporting obligations and identify overlaps.

• Adjust internal processes to achieve efficiency gains.

• Attend training sessions on new regulatory developments.

Training Opportunities

S+P Seminars offers practical training on ESG reporting, MaRisk, and other compliance topics. These courses help companies prepare early for regulatory changes.

For more information, visit: 👉 S+P Compliance Seminars

Conclusion

The Omnibus Regulation is a significant step in reducing the administrative burden of ESG reporting. Companies should prepare for the upcoming changes now to benefit from the harmonization. With targeted training and an adapted strategy, compliance requirements can be efficiently met while securing competitive advantages.