What specific proposals has the European Commission made?
The European Commission has announced the introduction of an 'omnibus' package to simplify sustainability requirements. Here are the main points:

Changes to the CSRD
• Reducing the scope of reporting
The Corporate Sustainability Reporting Directive (CSRD) will be simplified so that only larger companies with more than 1,000 employees and an annual turnover of more than €50 million or an annual balance sheet total of more than €25 million will have to report in detail on their sustainability performance. Smaller companies (up to 1,000 employees and €50 million turnover) can use the simplified and voluntary Voluntary SME Standard (VSME).
In addition, the European Sustainability Reporting Standards (ESRS) will be made more concrete and less complex.
• Abolition of sector-specific ESRS
The sector-specific ESRS, which have been postponed several times, will be discontinued.
• Assurance on sustainability reports
Mandatory sustainability reports will remain at the limited assurance level. The option to upgrade to reasonable assurance at a later stage will be removed.
• Postponement of reporting deadlines
The deadlines for the implementation of the CSRD and the Corporate Sustainability Due Diligence Directive (CSDDD) will be postponed by one year. Companies required to report by 2026 or 2027 will now have until 2028 to prepare for the new requirements.
Changes to the EU-Taxonomy
• Adjustment of thresholds
Companies with more than 1,000 employees and more than €450 million turnover will be required to report. Companies with a turnover of less than €450 million will only have to report on their taxonomy compliance on a voluntary basis.
• Voluntary reporting for SMEs
Smaller companies will be given the opportunity to voluntarily report on the taxonomy alignment of their economic activities.
• Financial materiality threshold
In addition, a financial materiality threshold will be introduced for taxonomy reporting, which is expected to reduce the number of reports by around 70%.
• Simplification of the "do no significant harm" criteria
The Omnibus proposal also includes simplifications to the strict taxonomy compliance check based on the 'Do No Significant Harm' (DNSH) criteria.
What should companies do now?
The possible postponement and adjustment of reporting requirements through the Omnibus Initiative may provide some short-term relief for companies, but it does not fundamentally change the fact that sustainability remains a business-critical issue and should be integrated into existing processes. Demands from the market, suppliers, customers, banks, investors and other stakeholders will continue to ensure that companies below the new thresholds will still need to address sustainability and reporting.
Companies should therefore also see the Omnibus Regulation as an opportunity to take a more serious look at their sustainability strategy. In addition, the reduced reporting burden will give companies a head start in improving their sustainability performance and providing credible evidence to gain long-term competitive advantage.
Although the EU Commission has made concrete proposals, it is expected that there will be further proposals for changes.
Preparation is the key to success
Don't be fooled. It is wiser to take advantage of the transition period and deal with the existing regulations now than to wait. Don't stop working on sustainability issues, but in the meantime put in place an efficient process so that you can respond quickly when the changed regulations come into force.
Changes can also bring benefits
Even if the new regulations reduce reporting requirements, many companies will still be faced with the need to document sustainability. In particular, companies that want to be seen as sustainability leaders will benefit from structured and future-proof reporting. Investing in sustainability reporting today means being well prepared for future developments.
Slow adaptation means less risk
The EU is proposing to exempt smaller companies from extensive reporting requirements, but there will still be requirements to meet. In particular, in large value chains, companies may be required to provide sustainability data by their customers - especially those that work with larger companies, need loans from banks or investments from investors. Rather than stop reporting immediately, companies should ensure that they are prepared for all eventualities.
How the WAVES Sustainability Management Platform (SMP) helps you navigate the requirements in a legally compliant and targeted manner
Rapid adaptation thanks to modular structure
One of the strategies behind the WAVES Sustainability Management Platform (SMP) is to be prepared and able to react quickly to changes in legislation. Thanks to the modular structure of the SMP, we are able to make the necessary adjustments to the relevant modules as soon as the omnibus amendments are adopted. This means that your reporting is always up to date with the latest regulatory requirements.
Flexible solutions through a holistic approach
Sustainability certificates continue to be demanded by suppliers, customers, investors and other stakeholders. With WAVES SMP, we offer a holistic solution that, for the first time, enables end-to-end transparency across the entire value chain in just ONE tool and combines it with sustainability management aspects.
With TÜV-certified calculation of transport emissions, calculation of corporate carbon footprints and AI-based product carbon footprint and demand forecasting solutions from pacemaker.ai, we help companies continue to meet customer demands and improve their sustainability performance.
In addition, we offer sustainability management consulting and strategy development to show companies how to effectively and sustainably integrate sustainability into their business strategy.
Conclusion
Stay flexible and prepared. With the Omnibus, the European Commission has taken important steps to simplify sustainability rules for companies. However, the final rules are still pending. As things stand, the European Parliament is expected to vote on the proposals in an urgent motion on 1 April. After the vote in the Parliament, the proposals will go to the EU Council. We expect the process of final adoption of the omnibus proposals to be completed by the end of Q2, but no later than Q3. Companies should therefore not be in a hurry to stop reporting, but should pay close attention to the new rules and ensure that they are well prepared.
With the right software solutions and a forward-looking strategy, you can use this time to optimise your reporting and position yourself as sustainable and forward-looking for the long term.