The Omnibus process began last year with the goal of simplifying the EU’s sustainability laws. That process is now officially complete. The EU Council has given its final approval for the Omnibus package, sending the legislation for publication in the Official Journal of the EU. A press release from the Council states:
“With a view to boosting EU competitiveness, the Council gave today its final green light to a simplification of the sustainability reporting and due diligence requirements for companies. This legislation simplifies the directives on corporate sustainability reporting (CSRD) and corporate sustainability due diligence (CS3D) by reducing the reporting burden and limiting the trickle-down effect of obligations on smaller companies…
The text of the legislative act will be published in the EU’s official journal in the coming days and will come into force on the twentieth day after this publication. Member states will have one year after the entry into force of the directive to transpose its provisions into national legislation except for article 4 on the level of harmonisation, with which they must comply by 26 July 2028 at the latest.”
This was the expected outcome. With major political debates wrapping up in December of last year, the Council’s approval was mostly a formality. Now that the Omnibus reforms will officially be on the books, the only uncertainty that remains is the simplified ESRS. These are currently in draft form and have received feedback from the European financial regulators. Once finalized, the simplified ESRS will provide the final piece of the reformed CSRD, giving us more certainty on compliance.
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