All Eyes on the EU’s Omnibus Proposal
The European Commission introduced its Omnibus proposal on Feb. 26 aiming to simplify European sustainability regulations, including the Corporate Sustainability Reporting Directive (CSRD). Companies globally are now evaluating its impact on their reporting approaches.
What U.S. companies should be evaluating now
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Are you still in scope?
The Omnibus proposal raised CSRD reporting thresholds, exempting many mid-sized companies by only requiring non-E.U. businesses with higher E.U. revenues to comply. U.S. companies should verify if they still need to file reports.
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How is your value chain reporting being impacted?
The proposal limits value chain reporting by removing requirements to obtain sustainability information from smaller partners not covered by CSRD. Consider which of your value chain partners are no longer subject to these requirements.
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How can you leverage the reporting delay?
The proposed CSRD reporting delay for the next wave of companies gives businesses extra time to improve their sustainability plans and reporting tools. Companies can use this breather to better align with changing regulations and get their data management and control practices in order.
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Will fewer mandatory data points affect your reporting obligation?
Companies should evaluate how these streamlined requirements align with their materiality assessments and strategic goals.
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How might the proposal impact your resource allocation?
The narrowed reporting scope and limited assurance requirements may free up resources for other sustainability initiatives.
