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Rapporteur MEP Jörgen Warborn (EPP, Sweden) presented his report on the Omnibus proposal amending corporate sustainability reporting and due diligence requirements to the European Parliament (EP) Legal Affairs Committee (JURI) on 24 June. He argued that the European Commission’s (EC) proposal does not sufficiently reduce burdens.
He proposes the following changes to further cut costs for businesses:
European People’s Party (EPP) MEPs supported further simplification, with MEP Angelika Niebler (EPP, Germany) calling for the CSDDD’s cancellation.
Shadow rapporteurs shared their views, noting that:
The Council of the EU agreed on its position on the Omnibus proposal amending certain sustainability reporting and due diligence requirements on 23 June.
The Council’s position on the CSRD:
On the CSDDD:
The Council can enter the negotiations with the EP once the latter adopts its negotiating mandate on the proposal.
The EP commissioned a study at the request of the JURI Committee examining regulatory overlaps in the CSRD, the CSDDD, and the EU Taxonomy.
Amongst the study’s key observations:
The study, however, criticises the EC’s approach to the Omnibus directive for lacking transparency, omitting impact assessment, and reversing prior positions without clear justification.
The Council cancelled the trilogue meeting on the Green Claims Directive (GCD), scheduled for 23 June, following political signals suggesting the EC’s intention to withdraw the proposal.
The GCD was considered as a flagship initiative to combat greenwashing that is now at the last stages of the trilogue negotiations. It requires companies to verify their environmental claims to prevent greenwashing and protect consumers.
The EC officials promptly clarified that the initiative has not been formally withdrawn.
Prior to this, shadow rapporteurs on the file MEP Arba Kokalari (EPP, Sweden) and MEP Danuše Nerudová (EPP, Czech Republic) sent a letter to Commissioner Jessika Roswall asking the EC to reconsider and ultimately withdraw the GCD proposal. In the letter, MEPs clearly stated that they will not support any trilogue outcome, arguing that the GCD undermines EU commitments to better regulation and risks harming businesses without clear benefits. While supporting action against greenwashing, they believe the existing Empowering Consumers for the Green Transition (ECGT) Directive is sufficient if properly enforced.
In the letter, Commissioner Albuquerque asked EFRAG to ensure that the following points are integrated in the draft revised standards:
The EC extended the deadline to deliver the technical advice to 30 November 2025.
Consequently, EFRAG Sustainability Reporting Board decided to extend the duration of the upcoming public consultation on the revised ESRS initially planned to run for 30-35 days. The public consultation period is now expected from the end of July until the end of September 2025 (60 days).
EFRAG issued a progress report to update the EC about the work performed on ESRS set 1. The simplification effort so far aims to reduce datapoints by 50% by activating the following levers:
EFRAG published a new educational video demonstrating the use of the VSME Digital Template and the Template to XBRL Converter, in support of the digitalisation of sustainability reporting for SMEs.
ESMA published its report on the 2023–2024 Common Supervisory Action (CSA) with NCAs, reviewing how investment managers integrate sustainability risks and disclosures.
The compliance with EU sustainability rules is satisfactory; however, risk integration and Sustainable Finance Disclosure Regulation’s (SFDR) disclosures need to be improved at both the entity and product levels.
ESMA calls on continued supervisory engagement and plans further coordination among regulators to promote convergence and strengthen market practices.
The Securities and Markets Stakeholder Group (SMSG) welcomed ESMA’s consultation on the draft technical standards (RTS) under the ESG Ratings Regulation and supports the simplification approach. It called for further clarity, especially on SMEs, outsourcing, and ‘scientific methodology,’ and urges alignment with ongoing reviews, including the CSRD.
198 signatories, including 84 investors, 29 companies and other organisations, issued a joint statement calling on policymakers to preserve the integrity of EU sustainability rules in the context of the Omnibus proposal.
The Omnibus should not undermine the core principles of the CSRD, ESRS, or CSDDD. Simplification should be achieved by:
The IFRS Foundation published 17 jurisdictional profiles and their progress towards the International Sustainability Standards Board (ISSB) adoption. Among them:
It is also noted that the EU is missing from these profiles and will be updated after the ESRS revision.
IFRS issued a guidance on disclosures on transition plans. It builds on disclosure-specific material developed by the Transition Plan Taskforce (TPT), for which the IFRS Foundation took responsibility in 2024. The guidance:
The Global Reporting Initiative (GRI) launched two new standards: the GRI 102: Climate Change and the GRI 103: Energy. Both standards are based on scientific and authoritative global instruments on climate change and are fully aligned with the GHG Protocol.
These streamline reporting practice for companies while ensuring decision-useful and highly relevant information that meets the needs of a wide range of stakeholders.
The UK government and the Financial Conduct Authority (FCA) are seeking feedback on the UK Sustainability Reporting Standards (SRS).
These standards, based on the IFRS S1 and S2 disclosure requirements and aligned with ISSB principles, will form the foundation for credible, decision-useful sustainability-related financial reporting.
The UK government is investigating the costs and benefits of adopting these standards, informing future decisions on mandatory reporting.
The FCA intends to consult on how listed companies will adopt the UK SRS and plans to strengthen expectations on transition plan disclosures, referencing the Transition Plan Taskforce framework.
European Commission
Feedback period on sustainable products – disclosure of information on unsold consumer products
EFRAG
EFRAG administrative board physical meeting - 24 June 2025
EFRAG
EFRAG issues final comment letter on ISSB’s Greenhouse Gas Disclosure proposals
European Supervisory Authorities
Consultation on how to integrate ESG risks in the financial stress tests for banks and insurers
ESMA
ESMA promotes clarity in sustainability-related communications
IFRS
GRI 102 and IFRS S2—rReporting on both standards and equivalence for IFRS S2 on GHG Emissions Disclosures
IFRS
IFRS Foundation launches new e-learning modules to support implementation of ISSB Standards
IFRS
IASB issues revised Practice Statement on management commentary