EU’s Omnibus Package Aims to Simplify Sustainability Reporting

White & Case has reported that the European Commission will introduce an Omnibus package by the end of February 2025 aimed at simplifying sustainability reporting obligations. While the details remain uncertain, the initiative is expected to align and streamline key European Union sustainability laws.

The Omnibus package is anticipated to address reporting requirements under the Corporate Sustainability Reporting Directive, the Corporate Sustainability Due Diligence Directive, and the EU Taxonomy. Other regulations, such as the EU Carbon Border Adjustment Mechanism, may also be included. However, it remains unclear whether this package will take the form of a formal legislative proposal or simply a roadmap for future reforms. Recent communications from the commission suggest a strong focus on reducing regulatory complexity.

Mario Draghi’s 2024 report on European competitiveness highlighted inconsistencies in EU sustainability reporting, reinforcing the need for reform. In response, the commission introduced a Competitiveness Compass, pledging to cut reporting burdens by about 25% for all companies and 35% for small and medium-sized companies. The Omnibus package aims to simplify sustainable finance reporting, due diligence requirements, and taxonomy rules while making CBAM more accessible for smaller market participants. These measures are designed to encourage investment in the transition and ease regulatory strain on businesses.

The full impact of the Omnibus package will become more apparent after it has been unveiled. If it takes the form of a legislative proposal, it will undergo the EU’s complex legislative process, potentially leading to significant amendments. Companies and national governments must prepare for possible changes, balancing compliance with evolving regulatory frameworks.