OMNIBUS: Ensuring Transparency AND Compliance
On February 26, 2025, the European Commission released two proposals aimed at reducing regulatory burdens, simplifying reporting requirements, and postponing mandatory reporting for many companies. These changes primarily benefit small businesses.
The proposed package introduces key updates to major frameworks, including the CSRD, CSDDD, EU Taxonomy Regulation, and CBAM. For food businesses using carbon footprint tracking solutions like Klimato, the CSRD amendments are particularly relevant.
These proposals are now under review by the European Parliament and the Council. Until they are formally adopted, the current CSRD requirements remain in effect.
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How Would the CSRD Change Under the Omnibus Package?
If adopted, the proposals would bring the following changes:
• Narrower Scope: Only companies with 1,000+ employees and either a turnover above €50 million or a balance sheet total exceeding €25 million would need to report, removing around 80% of previously covered firms.
• Simplified Reporting: Reporting requirements are streamlined, with sector-specific standards eliminated.
• Voluntary Reporting for Smaller Companies: Companies outside the scope can opt into a simplified framework.
• Extended Deadline: The first reporting requirement would be pushed to 2028 for FY 2027 ("Stop-the-clock" proposal).
What are the next steps for FOOD BUSINESSES?
• Continue Preparation: Despite uncertainty, companies previously within the CSRD’s scope should continue compliance efforts. If the Omnibus package is adopted late—or only partially—firms may still need to report under existing rules to avoid financial penalties.
• Consider Supply Chain Requirements: Even if exempt, SMEs may still be asked for ESG data by large companies (1,000+ employees) in their supply chain. Voluntary reporting may help maintain business relationships.
• Get Expert Guidance: Companies like Klimato can help you navigate these regulatory changes, determine what applies to your business, and reduce uncertainty while staying compliant.
Stay Ahead of Compliance Risks
Want to ensure compliance with your carbon footprint reporting? Learn how Klimato can help your business meet EU standards while maintaining credibility with customers.