Understanding the Omnibus Simplification Package
The Corporate Sustainability Reporting Directive (CSRD) is reshaping the landscape of corporate accountability across Europe. Designed to make ESG (Environmental, Social, and Governance) transparency a business norm, the CSRD introduces detailed, standardized reporting requirements on everything from climate risk to supply chain impacts, including plastic leakage risks and pollution.
However, concerns over administrative complexity and cost – especially for SMEs – prompted the European Commission to introduce the Omnibus simplification package in early 2025. This package proposes:
- Postponed application dates for certain companies
- Reduced number of mandatory ESG indicators
- Raised thresholds, decreasing the number of companies required to comply
While the core principles of the CSRD remain intact, especially double materiality, the Omnibus provides companies with breathing space. But make no mistake – this is a window of opportunity, not an excuse to delay action.
“The world is moving – climate change, biodiversity loss, and plastic pollution are not waiting for regulations to catch up. Neither should your sustainability strategy.”
– Sarah Perreard, Co-CEO of Earth Action (EA)
Why Forward-Thinking Companies Aren’t Waiting
Despite what may look like a regulatory reprieve, this is not the time to slow down. Here’s why proactive companies are accelerating their sustainability journeys now.
1. Environmental Risks Are Growing, Regardless of Regulation
Climate change, biodiversity loss, and resource depletion are escalating. Add to that plastic pollution and leakage risks, which are now officially on the CSRD radar.
Mapping your Impacts, Risks, and Opportunities (IROs) today helps build long-term resilience. Sustainability is no longer just a compliance requirement – it’s a strategic necessity.
2. Market Pressure Isn’t Slowing Down
The Omnibus may delay CSRD deadlines, but clients, investors, and stakeholders aren’t waiting. Supply chain partners are increasingly being asked to provide ESG data.
Banks, insurers, and even job seekers are evaluating companies based on sustainability performance. Transparency and environmental accountability are fast becoming competitive differentiators.
As Julie Gossen, Responsible Investment Specialist at Degroof Petercam Asset Management, explains, the push for high-quality ESG data is shared by both companies and investors—and goes far beyond regulatory compliance:
“Investors and companies both recognize the need for standardized and reliable ESG data, particularly on CO₂ and GHG emissions, to drive informed decision-making. Corporate disclosures provide a level of accuracy and transparency that estimated figures from third-party providers often lack. The CSRD, developed over four years of discussions with stakeholders, including companies, is a key step toward ensuring investors have access to high-quality, consistent data. Beyond compliance, its goal is to provide meaningful insights that reflect companies’ real sustainability efforts, ensuring capital is directed toward those genuinely integrating ESG into their business models.”
3. Less Reporting = More Room to Act
This simplified phase offers companies a rare gift: time and space to focus on impact rather than admin. Use it to:
- Launch or deepen your carbon and plastic footprint assessments
- Evaluate Scope 3 emissions and product life cycles
- Conduct water, biodiversity, and circularity assessments
- Prepare for double materiality with real data, not guesswork
To start understanding and addressing your plastic footprint, visit the Plastic Footprint Network.
4. Early Movers Will Have a Strategic Advantage
Companies already working on double materiality or sustainability reporting – even those temporarily out of CSRD scope – aren’t wasting time. They’re building internal clarity, identifying risk hot spots, and preparing for future investor and client demands.
When the next wave of CSRD implementation hits, prepared companies will lead – others will catch up under pressure.
A Call to Action: Use the Momentum, Not the Pause
You now have time, flexibility, and a strategic mandate – not just from regulators, but from reality.
Start measuring what matters.
Build your ESG muscle.
Act on your plastic footprint.
Use this moment not to pause – but to propel your transformation.
Need support?
At EA (Earth Action), we help companies go beyond reporting to build sustainability strategies that are data-driven, resilient, and future-ready. Whether you’re preparing for CSRD, starting your double materiality assessment, or calculating your plastic or carbon footprint, we’re here to help.
Reach out to us at www.e-a.earth or contact us directly at contact@e-a.earth to talk with one of our sustainability experts.
