What’s next for the EU’s Omnibus package?

Last week the EU unveiled the Omnibus proposal… and it’s not looking good.

The EU’s Green Deal was an ambitious legislative package with the intention to bring sustainable growth to the same level of importance as economic growth. At the Green Deal’s heart are a set of directives known as the CSRD, CSDDD, and the EU Taxonomy. These three groundbreaking directives aim to push for corporate environmental and social responsibility.

While the EU positions the Omnibus proposal as a simplification directive to safeguard economic competitiveness whilst upholding its sustainability ambitions, in reality, the content of the proposal shows that things are only getting more complex and that business interests are weighing much heavier than those of people and the planet.

In the excellent “Omnibus Unveiled” webinar, the World Benchmarking Alliance, ShareAction, Frank Bold, WWF, and the European Coalition for Corporate Justice break down the proposed changes and expected impacts.

Missed it? You can watch the full webinar here or check out a summary here.

What now?

CSRD & CSDDD:

Legislatively speaking, we are back to where we were a few years ago, as proposals for CSRD & CSDDD will now be discussed in Parliament and at Member State levels (Level 1 text negotiations). This means everything is back on the table and interest groups are busy lobbying across the full spectrum. Some want to go back to the initial version of the legislation, others want the proposed changes, and there are even groups that want to get rid of the legislation entirely. In other words, now is an important time to get involved.

With everything on “fast-track”, the position of a dedicated Council on the Omnibus proposal is expected before the Summer, but EU Parliament will probably take longer as they first need to decide on the involved committees and appoint leads in different political groups.

Regarding implementation, alongside the Omnibus proposal, the EU Commission proposed a “stop-the-clock”. This will:

• Delay CSRD application for companies that have not yet started reporting by 2 years (second wave reporting now coming out in 2028 for FY2027, and third wave the following year)
• The revision of the European Sustainability Reporting Standards (ESRS) is only to happen after the adoption of the Omnibus proposal on the CSRD (expected in the next 12 months)
• Postpone the CSRD transposition deadline for Member States by 1 year
• Postpone the first wave of CSDDD application for companies by 1 year (to 2028)

EU Taxonomy:

For changes at the technical level of the EU Taxonomy, there is a consultation now open for 4 weeks (see consultation here). Afterwards, the proposal is to be scrutinized by the EU parliament and the Council.
While the original directives had the potential to spearhead corporate accountability and transparency, the Omnibus proposal threatens to block progress and plays in the hands of corporate impunity.

Recent Omnibus negotiations at the European Parliament have already become heated. To read about these debates, we recommend taking a look at Andreas Rasche’s insights:

Now is the time to say #NoToOmnibus and stand up for corporate accountability.