EU: CSRD change on the way?

Key Facts: The EU Commission plans to introduce an "Omnibus Simplification Package" targeting the EU Taxonomy for Sustainable Activities, CSRD, and CS3D. This package aims to reduce corporate reporting burdens following business and political pressure. The proposed package is expected to be published on February 26, 2025.

Why This Matters The simplification package could potentially ease the reporting burden for businesses within the scope of CSRD, affecting how companies report on sustainability and corporate due diligence. The package might address concerns about the necessity and benefits of extensive data provision under CSRD. It may even clarify ambiguities in current regulations, such as how companies should engage with employee representatives in their value chains.

What Happens Next: Once published, a legislative process will be triggered. The Commission will likely make small tweaks and changes to recently published legislation. BUT, for now, undertakings within the scope of CSRD must continue to comply with current requirements. The package may provide an opportunity for the Commission to offer much-needed guidance on implementation.

ADDITIONAL INFORMATION:

Forbes reports:

“Insiders now believe that the proposed Omnibus Simplification Package will most likely be published on February 26, 2025, sooner than originally expected. Once published, a legislative process is triggered that some climate activists believe could reopen negotiations on the intent of the original regulations.”

For a US perspective on CSDDD see here.