The EU omnibus package: what does it mean for your businesses?

Late on 26 February 2025, the European Commission announced an update that could make sustainability reporting easier for companies across the EU – and by extension, for businesses in Norway.

The proposal includes key adjustments to existing regulations, potentially affecting both what companies need to report and how quickly they must do it.

But what does this actually mean for you and your business? Here’s a quick and easy-to-understand overview of the most important changes – and why this is good news.

What do these changes involve?

Following extensive feedback from businesses, the EU has introduced several revisions to CSRD, CSDDD, and the EU Taxonomy, as well as regulations related to carbon pricing and sustainable investments. The goal is to reduce unnecessary administrative burdens while ensuring that businesses continue to contribute to the EU’s broader sustainability objectives.

Easing the burden for SMEs:
More time for what matters

For SMEs (fewer than 250 employees, turnover below €50 million), sustainability reporting requirements are set to become more manageable. The EU aims to reduce the administrative burden on SMEs more aggressively than for larger companies, targeting a 35% simplification and cost reduction by 2029.

SMEs will likely be exempt from mandatory reporting, although the details are still being finalised. Meanwhile, voluntary reporting through the VSME (Voluntary Sustainability Reporting Standard) is becoming increasingly important – and the standard is now nearing completion.

Benefits for larger companies:
A new category brings relief

A new "small mid-cap" category is being introduced for companies with 250–1,000 employees. This is expected to be a simplified version of CSRD, tailored to their size and focusing on standardised, measurable data. Additionally, the reporting start date has been postponed, although the exact details are still under discussion.

This change could affect around 31,000 companies in the EU and over a thousand in Norway, giving them more time to focus on growth rather than bureaucracy.

Another important update is that a variation of the VSME standard will now be used for value chain reporting. VSME will set limits on the data that the largest banks and corporations can require from their suppliers and customers, ensuring a more balanced and realistic approach to sustainability reporting.

The situation for the largest companies:
Some changes, but strict requirements remain

The largest companies (over 1,000 employees, turnover above €450 million) will still be required to follow full CSRD reporting, including supply chain sustainability disclosures. However, the reporting start date has been postponed from 2026 to 2028.

The planned CSDDD (Corporate Sustainability Due Diligence Directive) is also being adjusted to reduce reporting frequency and the risk of penalties. These two regulations are now being increasingly aligned, which offers some relief – but the overall requirements remain strict.

Summary: What does this mean for you?

• SMEs: Less bureaucracy, a focus on voluntary VSME reporting, and increased value from VSME.

• Larger companies: A new small mid-cap category simplifies CSRD reporting.

• The largest companies: Strict requirements remain, but CSRD deadlines have been extended and supply chain reporting has been adjusted.

Our recommendation: Get ahead and explore climate reporting this year
– at your own pace

If the European Commission’s proposal is approved, it will give your company more breathing room to prepare for reporting at a pace that suits you.

Many of our customers have started trial reporting a year before their official reporting deadline. This allows them to take on more of the work themselves, saving time and money on consultants. By doing the same, you can gradually introduce new processes, making the transition more manageable. You'll also have time to identify key focus areas and gather data from suppliers and subsidiaries well before you need it.

Think of it as a gift of extra time. The earlier you start, the more control you’ll have – and the greater competitive advantage you’ll gain. Businesses that succeed in sustainability win contracts. And those who succeed are the ones who plan strategically, step by step, long before the requirements take full effect.

👉🏼 Simple, fast, and affordable climate reporting – check it out here.

Stay tuned – the Omnibus package could work to your advantage if you make smart use of these changes! 🚀

Sources:

Main article from the European Commission:
Commission proposes to cut red tape and simplify the business environment (26 Feb 2025)

EU Q&A on the Omnibus package:
European Commission Q&A on the proposed changes