EU rolls back CSRD requirements with Omnibus proposal

Small and mid-sized businesses could soon be exempt from reporting the climate impact of their activities following proposed changes to the EU’s sustainability reporting rules announced this week.

Part of the EU’s previously announced ‘Omnibus’ simplification package, the European Commission on Wednesday detailed changes to its recently-introduced Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD).

This includes drastically reducing the CSRD’s scope by removing reporting requirements for 80 per cent of companies. The proposed change would restrict the mandate to only large EU-based companies with more than 1,000 employees (and with either a balance sheet in…