Omnibus project – what do we know about the ESG reporting simplification pack?
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The European Union plans to simplify environmental, social and governance (ESG) regulations to make them more accessible to companies while maintaining high reporting standards. Announced by European Commission President Ursula von der Leyen in November 2024, the omnibus project (the type of legislation has not yet been specified) aims to consolidate key regulations into a single, simplified system for corporate sustainability reporting. The changes are due to be announced on 26 February 2025 during a speech by Stéphane Séjourné, the European Commission Vice-President in charge of preparing for simplification.
Regulatory context and Budapest Declaration
The Budapest Declaration, adopted in 2024, envisages a “simplification revolution”, i.e. improving the competitiveness of the EU economy by reducing reporting obligations by 25% by mid-2025. Simplification will consist of eliminating repetitive requirements rather than lowering sustainability reporting standards, and will particularly affect SMEs. In addition, the Budapest Declaration identifies the goal of building an EU based on an integrated energy market, decarbonisation and access to affordable, clean energy, as well as strengthening the circular economy and creating an integrated market for secondary raw materials.
What regulations will the Omnibus cover in terms of sustainability?
CSRD (Corporate Sustainability Reporting Directive) – extends ESG reporting obligations for large companies and SMEs, increasing transparency.
CSDD (Corporate Sustainability Due Diligence Directive) – requires the identification and management of risks related to human rights and environmental issues in the supply chain.
EU Taxonomy Regulation – defines which business activities can be considered sustainable, reducing the risk of greenwashing.
Integrating these regulations into the ESG Omnibus will make it easier for companies to conduct business in line with requirements and meet sustainability goals, while reducing the administrative burden.
Possible assumptions for the Omnibus project
Integration of key ESG regulations – the CSRD, CSDD and the EU Taxonomy Regulation will be harmonised into one coherent system, eliminating unnecessary repetition and facilitating company compliance.
Reducing the administrative burden – reducing reporting obligations, especially for small and medium-sized enterprises (SMEs), without lowering ESG standards.
Ensuring uniform rules – simplifying reporting procedures across the EU for greater transparency and efficiency.
What could be examples of facilitating corporate reporting?
At the turn of the year, the European Commission collected simplification ideas from stakeholders. Among them were proposals such as:
- An integrated system – to support companies with sustainability, automation of the reporting process and the application of reporting standards.
- Simplification for SMEs – aligning esg reporting requirements with their capabilities, reducing the cost and time required to comply with new regulations.
- Alignment of requirements with investor needs – simplifying reporting for better alignment with real market expectations.
- Better coordination of implementation dates – providing companies with a transition period to comply with the new obligations.
- Reduction of contagion – reducing the impact of ESG regulation on the business partners of large companies, who were previously burdened by indirect requirements.
Which ESG reporting simplification package will be adopted, we will find out on 26 February 2025.
ESG Omnibus project implementation schedule
Work on the project is ongoing and the European Commission plans to present the details of the Omnibus package at the end of February 2025. This will be a key moment for further legislative decisions. The final version of the regulation and the timetable for implementation will be the result of consultations with companies and member states.
CSRD – what do you need to know about your organisation’s sustainability reporting? [click].
Summary
The content of the new legislation is still unknown and there is varying speculation about its impact on business. What is known is that the Omnibus project aims to simplify and reduce the burden on companies while maintaining the key objectives of social and corporate responsibility.
The European Union has not withdrawn from the Paris Agreement and reporting for already regulated companies is unlikely to change its rules, according to experts at Plan Be Eco. However, the new regulations may influence the alignment of companies’ strategies with reporting standards and facilitate the publication of an ESG report as required.
It is possible that this will be an opportunity for many companies to align their strategies more effectively with their long-term sustainability goals. By leveraging innovation, collaboration and best practice, companies can become leaders in the new era of corporate transparency and lay the foundations for sustainable business growth. In the long term, alignment with ESG regulations is in their own interest, as a positive image and financial performance go hand in hand.
