Overview

• The proposed Omnibus Simplification Package reduces the scope of the Corporate Sustainability Reporting Directive (CSRD) to only include companies with over 1,000 employees and specific financial thresholds.
• The Corporate Sustainability Due Diligence Directive (CSDDD) would also be scaled back, limiting supply chain accountability to direct suppliers and reducing monitoring frequency to once every five years.
• Despite initial drafts suggesting otherwise, the Taxonomy for Sustainable Activities remains largely unchanged, maintaining its classification system for green economic activities.
• The changes aim to cut administrative costs by €6.3 billion, but critics argue they undermine the EU's Green Deal goals and climate transparency.
• The bill requires approval from the European Parliament and the Council of the EU before becoming law, with debates expected over its impact on environmental and human rights standards.