Another in a short series on misconceptions I’ve seen regarding the recent EU Omnibus proposal. Many have stated that “Omnibus doesn’t change the ESRS.” While technically correct, the Omnibus proposal does signal major changes coming to the ESRS in the near future. When and if after the Omnibus comes into force, the ESRS will be reopened and revised:
“The revision of the delegated act will substantially reduce the number of mandatory ESRS datapoints by (i) removing those deemed least important for general purpose sustainability reporting, (ii) prioritising quantitative datapoints over narrative text and (iii) further distinguishing between mandatory and voluntary datapoints, without undermining interoperability with global reporting standards and without prejudice to the materiality assessment of each undertaking.”
We have no way of knowing how deep the cuts will go and what data points are on the chopping block. It is worth noting that the ESRS are promulgated through a delegated act which requires less input from the EU Parliament and Council, so we can expect less political resistance to these changes. However, the Commission expects to promulgate such changes no less than six months after the Omnibus proposal goes into effect, so timing is very dependent on the political future of the Omnibus.
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