Simplification of the sustainability reporting standards

On 26 February 2025, the European Commission presented the Omnibus proposal to reduce administrative burdens. In December 2025, the proposal was finally adopted by the European Parliament and the Council; publication in the EU Official Journal will follow in early 2026. The proposal introduces changes to CSRD, EU green taxonomy and CSDDD: fewer companies need to report, timelines have been adjusted and standards are simplified.

What is final now

CSRD and EU green taxonomy: only mandatory for companies with >1,000 employees and >€450 million turnover. For non-EU companies, €450 million EU-turnover applies.
CSDDD: threshold raised to >5,000 employees and >€1.5 billion in turnover (non-EU: €1.5 billion in EU turnover).
Timelines:
- CSRD: reporting will start from financial year 2027 (publication in 2028).
- CSDDD: application from financial year 2030 (reporting in 2031).
ESRS: Simplified; Fewer mandatory data points, no sector-specific standards. The adjustments are at an advanced stage, however not yet final.
EU green taxonomy: materiality threshold of 10% introduced; voluntary reporting possible for companies under €450 million turnover.
Assurance: remains 'limited assurance'; The switch to 'reasonable assurance' will be dropped for the time being and there will be a specific standard for the audits.
Supply chain responsibility: focus on direct suppliers; further down the chain only in the event of a plausible negative impact.

What are the benefits?

Why does reporting remain important even if your organization is not subject to the legal provisions?

Despite relaxations, most of the objectives from the Green Deal remain intact. The Draghi report also talks about the need for sustainability. In addition, large suppliers must comply with the reporting obligation and continue to make them more sustainable. Financial institutions and investors see the risks surrounding climate change increasing and the necessary transition for organizations. This makes insight increasingly important for both chain partners and the financial system, and insight from the chain is the basis.

Our approach

At Forvis Mazars, we understand the complexity that the European Commission's Omnibus proposal on sustainability reporting entails. We help you navigate the ever-changing regulations. Not only for the EU sustainability legislation, but also to put it in the right context and integrate it with other important sustainability guidelines.

By leveraging our extensive experience and tailored solutions, Forvis Mazars can support you in driving sustainable growth, improving transparency, achieving compliance, and ensuring accurate reporting in the changing sustainability landscape.

ESG strategy and transformation: As the Omnibus proposals introduce new standards and timelines, our experts help develop and implement strategies aligned with best-in-class ESG principles, so you can seamlessly integrate sustainability into your core business. With the extended timelines, you have more time to prepare for an external report and ensure the implementation of your sustainability strategy.

Reporting and assurance: With the proposed guidance aimed at simplifying and modifying reporting requirements, our audit and assurance solutions support your sustainability reporting plans.