Cority recently hosted a timely webinar unpacking the Omnibus proposal and its potential to reshape how companies approach the Corporate Sustainability Reporting Directive (CSRD). Led by sustainability experts Adèle Roncière, Marion Dop, and Louise Marques, the session explored what’s changing, what it means for businesses, and how organizations can continue preparing during this period of uncertainty. Here’s what you need to know.
What’s changing with the omnibus proposal?
The Omnibus proposal suggests major adjustments to the CSRD rollout, especially around scope, timing, and complexity. One of the most significant shifts is the proposal to raise the reporting thresholds, which could exempt roughly 80% of companies originally expected to comply.
It also proposes to give private companies and SMEs a two-year extension, offering more breathing room to get reporting systems in place. For those still required to report, the framework itself would become lighter. Sector-specific European Sustainability Reporting Standards (ESRS) could be removed, and fewer KPIs would be required overall, with a sharper focus on quantitative disclosures.
There’s also a proposed shift in audit expectations, moving from reasonable assurance to limited assurance in the early phases. This is another move designed to reduce compliance burdens.
A new voluntary reporting framework is also on the table for SMEs, allowing them to engage in sustainability reporting without being overwhelmed. And when it comes to EU Taxonomy reporting, only companies generating over €450 million in turnover would be required to participate, making it voluntary for many others.
Where Things Stand in the Legislative Process
Currently, the proposal is in the ‘Trilogue’ phase—where the European Commission, Parliament, and Council negotiate the final text. One of the most anticipated outcomes is the so-called “stop the clock” measure, which has already been approved. This outcome delays reporting obligations for Wave 2 companies, originally due in 2026, pushing them further down the road.
Beyond that, the directive will still need formal adoption at the EU level before member states begin transposing it into national law. That’s expected to wrap up by the end of 2025. Meanwhile, the European Commission is expected to revise the ESRS, with the aim of simplifying and streamlining them further.
How are companies reacting?
Despite the shifting landscape, many companies are choosing to press on with their sustainability efforts. Large companies, those with more than 1,000 employees, have made significant progress. According to data from our customers, around 67% have already completed their Double Materiality Assessment (DMA), and 20% have even started auditing those results to stay ahead of the curve.
Key Data from Our Customers
Mid-sized organizations, those with 250 to 1,000 employees, are also continuing with their DMA work, even though they may be exempt under the new thresholds. Many see the assessment as a valuable tool to shape their broader sustainability strategies, regardless of mandatory reporting requirements.
Key Data from Our Customers
Even some companies that will likely be exempt under the revised proposal are still moving forward. They’re using the insights from DMA to guide internal initiatives and demonstrate CSR leadership to investors and stakeholders.
What’s still holding teams back?
The results of a live poll during the webinar revealed that the most persistent challenge for companies is still data collection. Getting consistent, high-quality CSR data across departments remains complex, especially in organizations that aren’t used to cross-functional collaboration in this area.
Another common hurdle is engaging the executive team. While many participants have succeeded in gaining leadership buy-in, it’s clear that alignment at the top is key to making real progress. And with sustainability often touching HR, finance, operations, and more, managing these cross-functional efforts can quickly become overwhelming without the right coordination.
Advice for Moving Forward
If you’re among the companies facing a two-year delay, consider it a strategic advantage. Use this extra time to refine your sustainability strategy, revisit your DMA results, and begin tracking key KPIs like carbon emissions, even if reporting isn’t required yet.
For mid-sized companies, this is a great opportunity to explore the voluntary SME standards. Doing so can help future-proof your processes and position your company well for any changes that may come later.
Even if you’re exempt, sustainability should still be a priority. Many investors, customers, and even internal stakeholders still expect transparency and accountability. The work you do now can drive long-term value, even without a regulatory requirement.
Final Thoughts: Be Proactive, Not Passive
The Omnibus proposal may delay or lighten the reporting load for some, but it doesn’t change the direction of travel. ESG expectations are growing, and sustainability is increasingly seen as a core part of business strategy, not just compliance.
Keep an eye on legislative developments, keep building internal ESG capabilities, strengthen your data management systems, and make the most of your DMA insights.
Need help navigating what this means for your business? You can watch the full webinar recording or connect with Cority’s sustainability experts for personalized guidance. No matter where you stand under the Omnibus proposal, now is the time to stay prepared.
