The Omnibus Package for the CSRD explained

Published on April 3, 2025 by Rabin Thakur

• The Omnibus Package proposes to simplify the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD) and the EU Taxonomy

• The immediate impacts to the CSRD are a reduced scope and simplified reporting requirements

• The package received mixed reviews; obligated entities and small and medium-size enterprises welcomed the proposal while investors and investor coalitions were wary of it

• The changes proposed are to be revised once tabled in the European Parliament and the Council of the European Union

The Omnibus Package is a proposal recently introduced by the European Commission (EC) to amend certain reporting requirements under the CSRD, the EU Taxonomy and the CSDDD.

Stakeholders raised concerns about the complexities in implementing the reporting directives and called for their simplification and homogenisation at a meeting between the EC and European industry, civil societies and social partners in February 2025.

The Omnibus Package for CSRD is, therefore, the result of much-needed simplification of the regulations under the European Green Deal, which provides a level playing field for tackling greenwashing and addressing climate-related challenges.

Impact on reporting under the CSRD

The CSRD’s requirements mandate obligated companies to start reporting data for 2024 in 2025, primarily using the European Sustainability Reporting Standards (ESRS) that provide the key metrics and guidance for making required disclosures.

The Omnibus Package simplifies the reporting process under the CSRD quite significantly. The changes are expected to reduce the administrative burden by 25% overall and by about 35% for small and medium-size enterprises, according to the EC.

The table below compares the requirements under the CSRD’s original reporting directive and the revisions proposed in the Omnibus Package.

How is the Omnibus Package perceived?

The responses are mixed. Obligated undertakings, particularly small and medium-size enterprises, are happy about the reduced scope and number of KPIs and the postponement of mandatory reporting. The reduced administrative burden of reporting expected may also help companies to focus on growth and strategic priorities.

Investors, however, are concerned about the nature of simplifications made to the CSRD reporting directive. The United Nations Principles for Responsible Investment (UNPRI), the European Sustainable Investment Forum (Eurosif) and the Institutional Investors Group on Climate Change (IIGCC) have released a joint statement warning that revisions to the existing set of regulations risk regulatory uncertainty and would ultimately jeopardise the reallocation of capital towards sustainable investments as expected under the European Green Deal.

The future of the Omnibus Package

The package was proposed on 26 February 2025 and has yet to be approved by the European Parliament and the Council of the European Union. It is widely believed that the package will undergo revisions upon review by the two co-legislators – the Parliament and the Council.

We are keenly observing the developments. Our team of ESG subject-matter experts will align their CSRD reporting capability with all revisions proposed and accepted.

How Acuity Knowledge Partners can help

Acuity Knowledge Partners is a leading provider of ESG data and reporting services to the private markets. Our capabilities are developed around ESG data collection, aggregation, analysis and reporting. We have helped our clients navigate through and develop systems relating to reporting on regulatory requirements of the CSRD, SFDR and EU Taxonomy. We support clients on both sides of the maturity continuum to set up ESG reporting processes.

Sources:

• World Economic Forum: The EU's Omnibus proposal: What it is aiming for and what lies ahead

• European Commission 2025/0044 (COD): Proposal for an amendment to a directive

• European Commission publishes ‘Omnibus’ proposals

• Shipzero: Unveiling CSRD – its ripple effect on transport and logistics

• The Omnibus Package – European Commission releases significant proposals to simplify EU regulations

• UNPRI news and press articles

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