Omnibus Package Proposal: Potential Impacts on CSRD, CSDDD and Taxonomy

The European Commission’s Omnibus Package introduces sweeping changes to sustainability regulations, aiming to simplify compliance and reduce the burden on companies. Proposed in February 2025, this legislative bundle could redefine how thousands of businesses approach environmental, social, and governance (ESG) reporting.

For organisations striving to lead in ESG strategy, understanding these regulatory shifts isn’t optional—it’s essential. The Omnibus Package not only delays some compliance deadlines but also redefines who must report, how they report, and what data they need to disclose. At APLANET, we see this as both a challenge and a catalyst for smarter, more strategic ESG decision-making.

What’s in the Omnibus Package?

The Omnibus Package includes five key legal texts, with the most impactful changes targeting three core regulations:

• Corporate Sustainability Reporting Directive (CSRD)
• Corporate Sustainability Due Diligence Directive (CSDDD)
• EU Taxonomy Regulation

Together, these updates aim to improve alignment across EU legislation, simplify sustainability reporting standards, and offer breathing room to companies by adjusting timelines and requirements.

CSRD: A New Threshold for Compliance

The CSRD once applied to companies with as few as 250 employees. Under the Omnibus proposal, only companies with 1,000+ employees and €50M+ turnover (or €25M+ in assets) will fall within scope. That’s an 80% reduction in the number of affected organisations—dropping from over 50,000 to fewer than 7,000.

Other major CSRD changes include:

• Extended timelines: Wave 2 and 3 companies get a two-year reporting delay.
• Exemptions for listed SMEs: These organisations will no longer be bound by CSRD’s complex standards.
• VSME Framework: Small and medium enterprises can voluntarily report using a simplified ESG model.

At APLANET, we help clients leverage these delays—not to pause action but to deepen their ESG readiness and data strategy.

ESRS Revisions: Simplified, But Still Strategic

The European Sustainability Reporting Standards (ESRS), which define how companies report under CSRD, have also been revised:

• 70% fewer required data points
• Sector-specific standards removed
• Unclear provisions clarified

Despite this streamlining, the Double Materiality Principle remains intact. Companies must still assess:

• The impact of sustainability issues on their financial performance (financial materiality).
• Their own impacts on people and the planet (impact materiality).

This principle is key to transparency. It ensures that ESG data reflects not just internal risk, but external accountability—something that APLANET’s technology is built to support.

CSDDD: A Phased, Lighter Due Diligence Approach

The Omnibus Package also revises the CSDDD, making supply chain due diligence more practical:

• A phased compliance schedule starting in 2028
• Focus on direct suppliers only, unless there’s a clear risk downstream
• Five-year reporting cycles instead of annual checks
• Reduced penalties and no EU-wide legal liability

Climate transition plans remain a requirement—but companies are no longer legally bound to meet specific climate targets. Instead, they must show credible strategic planning.

For sustainability leaders, this is a shift from compliance-driven processes to strategy-driven ESG. With APLANET, companies can turn due diligence into a competitive advantage through automated monitoring and predictive ESG analytics.

EU Taxonomy: Reduced Scope, Realigned Standards

The EU Taxonomy now applies only to large companies, relieving smaller organisations from extensive eligibility and alignment assessments. Among the most business-friendly changes:

• Reporting becomes optional for SMEs
• Exemptions for minor activities (under 10% of revenue)
• Partial alignment reporting is allowed

Most notably, the “Do No Significant Harm” (DNSH) criteria—once one of the most complex aspects—are now simplified. This significantly reduces the reporting burden, especially for financial institutions tracking the Green Asset Ratio (GAR).

Practical Scenarios: If the Omnibus Package Is Approved

If the Omnibus Package becomes law, here’s what your organisation can expect:

• Less regulatory pressure and fewer required disclosures
• Longer timeframes to adapt your ESG processes
• A clearer path for voluntary ESG leadership through VSME-aligned frameworks

This could be a relief for many. But at APLANET, we caution against waiting. Regulatory uncertainty doesn’t negate the growing expectations of investors, clients, and employees. In fact, leading companies use these moments to leap ahead of the curve.

What If It’s Rejected? Why You Still Need to Act

If the Omnibus Package is rejected or heavily amended, the original CSRD and EU Taxonomy requirements remain fully in force. This includes:

• Reporting on both materiality dimensions
• Sector-specific disclosures
• Full supply chain assessments

Non-compliance could result in fines, reputational harm, and loss of ESG-linked financing opportunities. Even exempt SMEs may face indirect ESG data demands from large corporate clients.

Future-focused companies aren’t asking “if” they need ESG strategies—they’re asking “how fast” they can integrate them.

Next Steps: How APLANET Helps You Navigate ESG Complexity

Whether the Omnibus Package passes or not, sustainability reporting is no longer a “nice-to-have”—it’s a business imperative. Here’s how you can stay ahead:

1. Monitor legislative updates. Don’t wait for uncertainty to resolve itself.
2. Assess your ESG maturity. Identify data gaps and streamline internal processes.
3. Engage upstream and downstream. Talk to clients, suppliers, and investors about their reporting expectations.
4. Explore voluntary reporting. Use the VSME framework to demonstrate transparency and leadership, even if you’re not required to report yet.

At APLANET, we automate ESG reporting for CSRD, GRI, ISSB, and more—reducing the administrative burden while giving you control of your data. Our AI-powered platform helps companies not just comply, but lead.

The Future Is Still ESG

The Omnibus Package signals a shift—but not a retreat—from sustainability goals. Clear, reliable ESG data remains. Transparency and accountability still matter.

Companies that prepare now will be better positioned, no matter how the legislation evolves.

Let’s shape the future—one data-driven decision at a time.

Want to Go Deeper?

We’ve prepared a detailed Omnibus Package Guide that breaks down the proposed changes to CSRD, CSDDD, and EU Taxonomy—plus what they mean for your organisation in practice.

Download the full guide here and get a head start on strategic ESG planning.

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