Omnibus Regulation: Simplification of ESG reporting obligations
What is the Omnibus Regulation?
The Omnibus Regulation is a planned initiative of the European Union to simplify ESG (Environmental, Social, Governance) reporting obligations for companies. It aims to bundle existing and future reporting obligations and make sustainability reporting more efficient.
Background: Why was the Omnibus Regulation introduced?
On November 8, 2024, Commission President Ursula von der Leyen announced the Omnibus Regulation following a meeting of EU heads of state and government with the European Commission. The main objective is to streamline and simplify duplicate and overlapping reporting obligations in order to reduce the bureaucratic burden on companies.
The Omnibus Regulation integrates regulations from:
- Corporate Sustainability Reporting Directive (CSRD)
- Corporate Sustainability Due Diligence Directive (CSDDD)
- EU Taxonomy Regulation
- Sustainable Finance Disclosure Regulation (SFDR) (possibly)
- EU Deforestation Regulation (EUDR) (possibly)
Objectives of the Omnibus Regulation
1. consolidation of existing regulations: by merging various directives, duplications and inefficiencies are to be eliminated. The content of the regulations will be retained, but in a standardized and more practical format.
2. reduction of reporting obligations: Companies should have at least 25% fewer reporting obligations. This reduces costs and frees up more capacity for sustainable measures.
3. standardized definitions and reporting formats: The different ESG regulations often contain contradictory terms. The Omnibus Regulation is intended to harmonize terminology and facilitate reporting.
Effects on companies
Advantages for companies
- Simplification of reporting obligations
- Cost savings through more efficient processes
- Harmonization of definitions and requirements
Challenges for companies
- Regulatory uncertainty during the transition phase
- Possible delays in the implementation of sustainability strategies
Timetable and next steps
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Recommendations for companies
Despite the planned simplifications under the Omnibus Regulation, companies should not wait for its implementation, but should proactively continue their sustainability reporting:
- Early adaptation: In order to ensure compliance and exploit competitive advantages , companies should start implementing the CSRD requirements now.
- Process optimization: An early start makes it possible to optimize internal processes and set up the necessary infrastructure for data collection.
- Stakeholder expectations: Investors, customers and partners increasingly expect transparent sustainability information. Companies that already publish reports can build trust and position themselves as pioneers.
- Digital solutions: The use of digital software solutions (such as Planted) can help to capture data efficiently, automate reports and ensure legal compliance.
Conclusion: act now to secure benefits
The Omnibus Regulation is an important step towards simplifying ESG reporting in the EU. However, companies should not wait for the reform, but should actively work on their sustainability strategy. Those who invest in efficient ESG processes today will benefit in the long term from more transparency, less bureaucracy and greater compliance security.
With Planted, you can implement your ESG strategy holistically and legally compliant in one software solution. Our experienced team of experts and smart AI functions support you in implementing your strategy, from thecarbon footprint and double materiality to the CSRD report and clear objectives. Get started now and arrange a free demo.
