CSRD relief: What the EU omnibus package means for companies

The European Commission is planning to significantly simplify sustainability reporting (CSRD). SMEs in particular could benefit, as the threshold value for the reporting obligation is set to change. Find out here what this means for your company and whether you still have to report!

The EU plans to simplify CSRD: What the Omnibus Package means for companies

The European Union has published a proposal to simplify sustainability reporting (CSRD – Corporate Sustainability Reporting Directive) in the form of the so-called Omnibus Package. The aim is to reduce the administrative burden on companies without jeopardising the EU's sustainability goals. Particularly important is the amended threshold rule, which could mean that many companies will no longer be subject to the reporting requirement.

What specifically will change?

According to the European Commission's current proposal, the CSRD requirement would in future only apply to companies that:

• have more than 1,000 employees
• and either a balance sheet total of over €25 million or net sales of over €50 million.

This would remove the reporting requirement from a large number of medium-sized companies – even if they generate a turnover of over €50 million but do not have 1,000 employees.

Concrete impact on companies

1. Relief for many medium-sized companies: Companies that fall below the new thresholds would no longer have to prepare a comprehensive sustainability report in accordance with the strict European Sustainability Reporting Standards (ESRS).
2. Reducing bureaucracy: CSRD reporting is complex and resource-intensive, from data collection to report generation and external auditing. For many companies, the elimination of the obligation will mean significant cost and time savings.
3. No requirement for external audits: Companies that are no longer required to report will no longer have to have their sustainability reports approved by auditors – a measure that will provide financial relief, particularly for SMEs.
4. Postponement of initial application: For companies that are still required to report, the start of the CSRD has also been postponed by two years:

• originally planned for 2025, it will now only be mandatory from 2027
• This gives companies more time to prepare and implement their sustainability strategy.

Should companies still report voluntarily?

Even if companies are no longer legally required to report under CSRD, there are reasons why voluntary sustainability reporting can still be useful:

📌 Customer requirements: Large companies that are still required to report could demand sustainability data from their suppliers. A certain degree of transparency therefore remains important.

📌 Banks and investors: Financial institutions are increasingly paying attention to ESG (Environmental, Social, Governance) criteria. Those who can demonstrate sustainable business practices can secure financing advantages.

📌 Boosting your reputation: Sustainability is a key issue for customers and business partners. Transparent communication can strengthen a company's image and provide competitive advantages.

What does this mean for your company?

Companies with fewer than 1,000 employees but a turnover of more than €50 million would be exempt from the CSRD reporting requirement, provided that the proposed legislation is adopted. However, it still makes sense to keep an eye on sustainability-related key figures and consider voluntary reporting, particularly for supplier relationships or financing options.

Conclusion

The Omnibus Package will make things much easier for many SMEs by linking the CSRD reporting requirement to new thresholds. However, the final decision is still pending – the European Parliament and the EU Council still have to approve the proposal. Until then, it is important to stay informed and wait to see if the planned changes come into force.

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