The European Union has reached a provisional agreement on the Omnibus I package, simplifying sustainability reporting rules for companies. Key changes include…
Reduced Scope:
The Corporate Sustainability Reporting Directive (CSRD) will apply to EU companies with over 1,000 employees and €450 million in revenue, reducing the number of in-scope companies by approximately 90%.
Simplified Reporting:
Sector-specific reporting will become voluntary, and companies with fewer than 1,000 employees can refuse to report beyond voluntary standards.
CSDDD Changes:
The Corporate Sustainability Due Diligence Directive’s (CSDDD) scope is reduced, applying to companies with over 5,000 employees and €1.5 billion in revenue.
Transition Plans Removed:
Companies will no longer be obligated to adopt or implement climate transition plans under the CSDDD. However, companies remaining in scope of the Corporate Sustainability Reporting Directive (CSRD) will still need to report on their climate transition plans, if they have one.
Liability and Fines:
EU-level liability is eliminated, and fines capped at 3% of global net revenue.
The agreement still needs formal adoption by the European Council and Parliament, expected this month.
