Omnibus explained: key changes to sustainability reporting standards

Accountancy Europe’s has issued three factual analysis of the European Commission’s (EC) recent Omnibus proposal focusing on the Corporate Sustainability Reporting Directive (CSRD), sustainability reporting standards and Corporate Sustainability Due Diligence Directive (CSDDD). These papers aim to give stakeholders an initial overview of the key proposed changes expected to reshape sustainability reporting and due diligence practices across Europe. Read also our statement on the EC Omnibus sustainability proposal.

This paper will focus on the proposed changes on sustainability standards.

For more information on Accountancy Europe’s work on sustainability standards, visit on our website.

Omnibus background

The EC launched the Omnibus sustainability rules simplification package on 26 February 2025. This is the first step of an ambitious simplification agenda to enhance European economic competitiveness. It aims to reduce administrative and reporting burdens on companies and unlocking businesses’ investment potential.

The new simplification agenda set bold targets, including a 25% cut in reporting burdens for companies and 35% for SMEs. The EC expects this effort to boost European companies’ competitiveness while maintaining climate and decarbonisation goals of the Green Deal. The Omnibus package proposes amendments to several sustainability laws. These include the CSRD, the CSDDD, the EU Taxonomy for sustainable activities, and the Carbon Border Adjustment Mechanism (CBAM).

Proposed ESRS changes

The EC intends to revise the first set of ESRS to:

• reduce substantially the mandatory ESRS datapoints number by (i) removing those deemed least important for general purpose sustainability reporting, (ii) prioritising quantitative datapoints over narrative text and (iii) further distinguishing between mandatory and voluntary datapoints
• clarify provisions that are deemed unclear
• improve consistency with other pieces of EU legislation
• provide clearer instructions on how to apply the (double) materiality principle, to ensure that undertakings only report material information
• simplify the standards’ structure and presentation
• enhance further interoperability with global sustainability reporting standards
• make any other modifications considering the experience from the first ESRS reports.

The EC aims to adopt a delegated act with the revised first set of ESRS as soon as possible, and at the latest six months after the entry into force of the Omnibus proposals.

Way forward

It is important to note that the EC proposals are not final. The EC will submit the proposal to the two co-legislators – the European Parliament (EP) and the Council of the European Union – for their review, input and adoption. These institutions hold the power to amend the currently proposed Omnibus sustainability package.