Background: What is the Omnibus package and why has it been introduced?
Since the introduction of CSRD, which went into effect in January 2023, businesses have voiced their concerns about the complexity and administrative burdens – and thus the costs – associated with upholding the requirements laid out in the framework.
On the one hand, the EU introduced CSRD and other similar measures to drive progress towards the European Green Deal’s sustainability goals. The EU Green Deal seeks to make Europe the first climate-neutral continent in the world.
On the other hand, the EU is aware of how regulations can obstruct the operational practices of businesses. Not only can compliance requirements be costly to understand, report on, and maintain – they also create another layer of red tape and may impact businesses ability to attract new investments. This is especially true for smaller companies.
In this light, the Omnibus package is both a pause to the CSRD requirements in the short term, allowing businesses to better prepare for maintaining compliance, and also a simplification of the framework.
How the Omnibus package will simplify regulations
The Omnibus package can generally be said to have two stages; one for the short term, and one for the long term.
Short term relief
In the short term, the package seeks to alleviate some of the pressures that businesses have experienced on the backdrop of the EU Green Deal – and all the pieces of sustainability legislation the deal has inspired, like CSRD, CSDDD, and more.
This is partly done by offering small and medium sized enterprises (SMEs) the possibility of opting out of the requirements until 2028, thereby giving them extra time to prepare. This part of the package is also commonly referred to as the “Stop-the-clock” mechanism/directive.
Long term simplification
In the long term, the Omnibus package aims to simplify the framework through different measures. Here are some of the most important measures.
1. Higher thresholds
Originally the CSRD applied to companies with more than 250 employees, now up to 1,000+ employees. This effectively reduces the number of companies required to report by up to 80%.
This is seen as a major relief for SMEs that do not necessarily have the resources to meet the requirements put forth in the CSRD. However, these businesses can still voluntarily report on CSRD – also known as the voluntary sustainability reporting standard (VSME) – allowing them to demonstrate their ESG efforts, which might be valuable for them in order to satisfy stakeholders or attract new investments.
CEMAsys specializes in helping businesses demonstrate their ESG efforts. Interested in learning more?
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2. Fewer data points
With the Omnibus package, the plan is to reduce the amount of data points required to report on. For some groups by a staggering 70%. This is accompanied by more streamlined reporting templates, again making it easier for companies to demonstrate their ESG efforts.
3. Reduced overlap between sustainability frameworks
With the many sustainability frameworks set in motion – CSRD, CSDDD, EUT, SFDR, etc. – there existed duplicate overlaps and sometimes contradictory requirements making it difficult to meet expectations. The Omnibus package seeks to eliminate these overlaps and contradictions.
So what’s next?
As the Omnibus package is now proposed, the next steps include the European Parliament and European Council approving the amendments and adopting them into the existing CSRD framework (and other relevant sustainability frameworks).
However, the “Stop-the-clock” provision has already been successfully approved by both the Parliament (3 April 2025) and the Council (14 April 2025). This means that certain large companies and SMEs listed on EU-regulated markets have more time to adjust to the coming changes and requirements put forth in the CSRD – specifically until 2028.
For SMEs keen on demonstrating their ESG efforts, the Voluntary Sustainability Reporting Standards (VSME) have already been officially adopted by the Commission (30 July 2025).
You can read more about VSME adoption here.
And reach out to us for expert ESG advisory on how to navigate the reporting standards.
Furthermore, the European Financial Reporting Advisory Group (EFRAG) will continue developing and refining the actual requirements and related templates described in the overarching directives.
These operational standards and templates, also known as the European Sustainability Reporting Standards (ESRS), are the ones that businesses will need to familiarize themselves with in order to confidently be compliant with the different sustainability requirements.
In the meantime, companies — particularly large enterprises — should stay focused on building internal ESG reporting capacity, strengthening data collection systems, and engaging stakeholders to prepare for the full implementation of CSRD and related frameworks. While the Omnibus package offers welcome relief in the short term, the sustainability reporting agenda is moving forward — and proactive preparation remains key.
At CEMAsys, we offer specialized advisory services for ESG reporting, and we can help you navigate the jungle of acronyms – whether it’s CSRD, VSME, CSDDD, or another set of letters. Additionally, we offer our comprehensive system solutions to help you measure, manage, and report on anything ESG-related.
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Frequently asked questions about the EU Omnibus package
What is the Omnibus package in the EU?
The Omnibus package refers to a legislative proposal that seeks to postpone deadlines and simplify requirements put forth in the CSRD and CSDDD among other sustainability frameworks.
What is an omnibus proposal?
A combined proposal that amends several pieces of legislation simultaneously for efficiency.
Why is it called an omnibus?
The literal meaning of “omnibus” is a bus that can transport a large amount of passengers. In policy, omnibus refers to a package of legislation with a large number of measures.
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