A month ago, Zach wrote about the political pressure in the EU to reduce corporate reporting burdens and simplify the CSRD through the use of something called the Omnibus Simplification Package targeting the EU Taxonomy for Sustainable Activities, CSRD and the CS3D. More information is now coming out about it.
From Forbes:
“Insiders now believe that the proposed Omnibus Simplification Package will most likely be published on February 26, 2025, sooner than originally expected. Once published, a legislative process is triggered that some climate activists believe could reopen negotiations on the intent of the original regulations.”
From a LinkedIn post by Gabriella Lovas, who attended a webinar where speakers addressed the Omnibus Package:
“They explained that the Commission is thinking about how they can make simplifications, ‘really just small tweaks and changes around the margins,’ to legislation that they have published in the last few years. This doesn’t just apply to sustainability, that’s across all EU legislation. It’s possible that the Commission will propose a few small changes, probably well into 2025, to things like the CSRD to align it with other legislation and make life easier for smaller businesses.
Regarding wave 1 and 2 firms and what they have to do, the data they have to collect to comply, nothing will change. Their advice to these companies: ‘It’s full steam ahead. Keep doing what you’re doing to the same timeline. It’s just that in a few years time, and these things do take time, there may be some tweaks at the edges and those will probably be more likely to apply to smaller firms.’”
And there is this twist from Amanda Koefoed Simonsen out of Denmark:
“While the package is positioned as a tool for reducing regulatory burdens, its actual effects may differ because not all jurisdictions implemented the CSRD yet.”
Hopefully, we won’t have too much time of hand-wringing before getting a clearer picture of what to expect.
Members can learn more about CSRD and disclosing ESG generally here.
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