{"id":5782,"date":"2025-02-26T18:26:42","date_gmt":"2025-02-26T16:26:42","guid":{"rendered":"https:\/\/esghub.ro\/?p=5782"},"modified":"2025-03-05T16:52:18","modified_gmt":"2025-03-05T14:52:18","slug":"omnibus-the-european-commission-has-published-its-proposed-amendments-to-the-csrd-and-the-csddd","status":"publish","type":"post","link":"https:\/\/esghub.ro\/en\/omnibus-comisia-europeana-a-publicat-propunerile-de-modificari-asupra-csrd-si-a-csddd\/","title":{"rendered":"Omnibus: The European Commission has published its proposed amendments to the CSRD and CSDDD"},"content":{"rendered":"

The European Commission has published proposed amendments to the Corporate Sustainability Reporting Directive (CSRD) and the Sustainable Corporate Due Diligence Directive (CSDDD).<\/span><\/strong><\/p>\n

These amendments have two main objectives: to postpone the application of certain requirements (COM(2025) 80) and to simplify reporting and due diligence requirements (COM(2025) 81). These changes aim to reduce the administrative burden for companies and limit the trickle down effect on smaller firms. The \"trickle down\" effect refers to the transmission of reporting requirements imposed on large companies to SMEs in their value chain, which can create a considerable administrative burden for them.<\/span><\/p>\n

Main changes proposed by the Commission:<\/span><\/strong><\/p>\n

1. Postponing deadlines for implementation (COM(2025) 80)<\/span><\/h2>\n

To avoid certain companies being obliged to report before they are subsequently excluded from the scope, it is proposed to postpone the compliance deadlines by two years:<\/span><\/p>\n

    \n
  • the second wave of reporting (large companies not included in the first wave) will be postponed until 2028 (for the financial year 2027)<\/span><\/li>\n
  • the third wave of reporting (listed SMEs, small financial institutions) will be postponed until 2029 (for the financial year 2028)<\/span><\/li>\n<\/ul>\n

    The deadline for transposition of the Sustainable Corporate Due Diligence Directive (SCDDD) will also be postponed by one year and its application for large companies will start in 2028 instead of 2027.<\/span><\/p>\n

    2. Reducing the number of companies reporting (COM(2025) 81)<\/span><\/h2>\n

    Some 80% of the companies originally included will be removed from the scope of the directive. Only large companies with more than 1000 employees and either a turnover of more than \u20ac50 million or total assets of more than \u20ac25 million will be obliged to report. Also, all SMEs listed on EU regulated markets will be exempted from the mandatory requirements.<\/span><\/p>\n

    3. New reporting standards for exempted companies<\/span><\/h2>\n

    For companies that are no longer obliged to report, the Commission is proposing a proportionate voluntary reporting standard, based on the VSME standard developed by EFRAG and published a few months ago. This standard will allow small companies to provide sustainability information relevant to banks and large customers, but without imposing strict and costly requirements.<\/span><\/p>\n

    4. Extending and strengthening the value chain cap<\/span><\/h2>\n

    The obligation for large companies to collect sustainability data from their value chain has been relaxed. Under the new rules, firms with fewer than 1000 employees will no longer have to provide such information, reducing the trickle down effect on SMEs.<\/span><\/p>\n

    5. Elimination of sectoral reporting standards<\/span><\/h2>\n

    It does away with the introduction of sector-specific standards, reducing the amount of data required for reporting and simplifying the process for companies. The 12 ESRS adopted in 2023 remain valid and applicable. However, the Commission intends to revise them and simplify the number of reporting requirements, removing indicators considered less relevant and clarifying the materiality principle in order to reduce the compliance burden for companies<\/span><\/p>\n

    6. Clarifications on the audit of sustainability information<\/span><\/h2>\n

    The obligation to move from limited to reasonable assurance has been removed, giving companies certainty that there will be no additional costs for more stringent audits. The Commission will publish specific guidelines for sustainability assurance instead of adopting new mandatory standards.<\/span><\/p>\n

    7. Opt-in for reporting under the Taxonomy Regulation<\/span><\/h2>\n

    Large companies with up to 1000 employees and a turnover below \u20ac450 million will only be able to opt to report on taxonomy indicators if they wish to show alignment of their activities with the EU criteria for sustainability. This will significantly reduce costs for companies not directly interested in such reporting.<\/span><\/p>\n

    \"\"<\/p>\n

     <\/p>\n

    Next steps for Omnibus approval<\/span><\/h2>\n

    For these changes to enter into force, the proposed directive has to go through a few administrative steps:<\/span><\/p>\n

      \n
    • debate and approval in the European Parliament (a process that can take 6-12 months)<\/span><\/li>\n
    • approval in the Council of the European Union (this can take between 6 and 9 months)<\/span><\/li>\n
    • formal adoption and publication in the EU Official Journal<\/span><\/li>\n
    • transposition into Member States' national laws (which can take up to 24 months).<\/span><\/li>\n<\/ul>\n

      If we take as a reference the CSR Directive, which was proposed by the Commission in April 2021 and endorsed by the European Parliament in November 2022, the total duration of the legislative process can be estimated at around 18-24 months before the obligations are applicable to companies.<\/span><\/p>\n

      The changes proposed by the European Commission have been criticised by some experts, non-governmental organisations and other stakeholders at European level, who believe that these changes may lead to decreased transparency, affect corporate accountability, undermine investment and potentially have consequences for EU climate policies.They dilute sustainability and human rights standards. The legislative process is at an early stage and companies and investors are awaiting clarification on the future of ESG regulation in the European Union. The European Parliament is likely to propose amendments to the Commission's proposal to maintain certain strict requirements and ensure a balance between simplification and the protection of EU sustainability objectives.<\/span><\/p>","protected":false},"excerpt":{"rendered":"

      Comisia European\u0103 a publicat propunerile de modific\u0103ri asupra Directivei privind Raportarea Corporativ\u0103 de Sustenabilitate (CSRD) \u0219i a Directivei privind Diligen\u021ba Corporativ\u0103 Sustenabil\u0103 (CSDDD). Aceste modific\u0103ri au dou\u0103 obiective principale: am\u00e2narea aplic\u0103rii anumitor cerin\u021be (COM(2025) 80) \u0219i simplificarea cerin\u021belor de raportare \u0219i diligen\u021b\u0103 (COM(2025) 81). Aceste schimb\u0103ri vizeaz\u0103 reducerea poverii administrative pentru companii \u0219i limitarea efectului […]<\/p>\n","protected":false},"author":4,"featured_media":3645,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":11,"footnotes":""},"categories":[1,9],"tags":[130],"class_list":["post-5782","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legislatie","category-noutati","tag-omnibus"],"_links":{"self":[{"href":"https:\/\/esghub.ro\/en\/wp-json\/wp\/v2\/posts\/5782","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/esghub.ro\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/esghub.ro\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/esghub.ro\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/esghub.ro\/en\/wp-json\/wp\/v2\/comments?post=5782"}],"version-history":[{"count":4,"href":"https:\/\/esghub.ro\/en\/wp-json\/wp\/v2\/posts\/5782\/revisions"}],"predecessor-version":[{"id":5916,"href":"https:\/\/esghub.ro\/en\/wp-json\/wp\/v2\/posts\/5782\/revisions\/5916"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/esghub.ro\/en\/wp-json\/wp\/v2\/media\/3645"}],"wp:attachment":[{"href":"https:\/\/esghub.ro\/en\/wp-json\/wp\/v2\/media?parent=5782"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/esghub.ro\/en\/wp-json\/wp\/v2\/categories?post=5782"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/esghub.ro\/en\/wp-json\/wp\/v2\/tags?post=5782"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}