On February 26, 2025, the European Commission (EC) launched the Omnibus Package, a set of proposals to simplify the sustainability agenda in the European Union (EU). The goal is to increase the EU’s competitiveness and investment capacity by reducing administrative burdens for companies by at least 25% and for SMEs by at least 35%.
What changes with the Omnibus Package?
The package proposes significant changes to several sustainability regulations, including the Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD), the EU Taxonomy, the Carbon Border Adjustment Mechanism (CBAM), and the InvestEU Regulation.
CSRD – Corporate Sustainability Reporting Guidelines
The CSRD defines requirements for disclosing sustainability information, promoting greater transparency and uniformity among companies.
Proposed amendments:
- Reduction of the scope of application: mandatory reporting only for companies with more than 1,000 employees and revenue exceeding 50 million euros or assets exceeding 25 million;
- Delay of entry into force for companies currently covered by the CSRD by two years;
- Reduction of approximately 25% of data points, especially qualitative ones;
- Removal of the obligation to adopt sector-specific standards from the ESRS standards;
- Limitation of information required from companies in the value chain not covered by the CSRD;
- Elimination of the obligation to ensure reasonable reliability.
With these changes, the EC expects to reduce the number of companies required to report by approximately 80%, concentrating obligations on larger, more impactful companies.
EU Taxonomy Regulations
The Taxonomy establishes a classification system for sustainable economic activities.
Proposed changes:
- Option to report partially aligned activities, promoting a gradual transition;
- Only companies with more than 1,000 employees and revenues exceeding R$450 million must report in full;
- Companies with revenues between R$50 million and R$450 million may report in a simplified format;
- 70% reduction in required information;
- Revision of the “Do No Significant Harm” (DNSH) criteria;
- Introduction of a materiality threshold for companies with less than 10% of aligned activities.
CSDDD – Corporate Sustainability Due Diligence
The CSDDD requires companies to identify, prevent, and mitigate negative impacts on human rights and the environment.
Proposed changes:
- Changes to implementation dates;
- Value chain monitoring for direct stakeholders only;
- Audits every five years;
- Removal of sanctions based on global revenue;
- Each Member State will define its own liability regime.
CBAM – Carbon Border Adjustment Mechanism
CBAM regulates carbon emissions associated with products imported into the EU, preventing “carbon leakage.”
Proposed changes:
- Simplification of emissions calculations;
- Expansion of covered sectors;
- Exemption for small importers (<50 tons/year);
- Simplified certification and declaration process.
InvestEU
The regulation aims to mobilize public and private investment for strategic projects in the EU, supporting sustainability, innovation, and social inclusion.
Proposed Changes:
- Reducing bureaucratic complexity;
- Greater flexibility in the use of funds;
- Adjusting eligibility rules to benefit more projects.
Conclusion
Although the Omnibus Package temporarily reduces regulatory pressure, sustainability remains a core strategic factor. The proposed changes provide time and flexibility for a thoughtful integration of ESG challenges, enabling companies to strengthen competitiveness, reduce risks, and create sustainable value for business, society, and the planet.
As these proposals move toward final adoption, organizations that anticipate and adapt their ESG strategies will be better positioned to face future regulatory demands, cementing sustainability as a key element of their long-term strategy.