Select your language
CSRD Omnibus - Easing Reporting Burden
EU CSRD Omnibus Proposal: What It Means for Businesses
The EU Omnibus proposal significantly reduces sustainability reporting obligations for companies with fewer than 1,000 employees. Most of these companies will be removed from the mandatory scope of the CSRD altogether, as the threshold shifts to focus primarily on larger companies above this size.
For smaller companies, reporting will become largely voluntary, based on a simplified SME standard (VSME). This allows businesses to disclose sustainability information in a more proportionate and manageable way, without the full complexity of CSRD requirements.
Importantly, the proposal also protects these companies within value chains. Larger companies will no longer be able to request extensive sustainability data beyond the voluntary standard, reducing indirect reporting pressure and administrative burden.
Overall, the effect is a major easing of compliance: fewer mandatory requirements, less data collection, and more control over what to report—while still allowing smaller companies to participate in sustainability reporting if they choose.
Minimal Impact for Large Corporations
Despite potential regulatory adjustments, the simplification proposal is unlikely to cause significant disruptions, especially for large corporations. Most major companies have been engaged in sustainability reporting for years, driven not by regulatory requirements but more so by stakeholder expectations. Investors, customers, and supply chain partners demand transparency on environmental and social impacts, making sustainability reporting a business necessity rather than just a compliance exercise.
For these large companies, CSRD alignment typically requires only minor refinements to existing sustainability reports, many of which are already underway. Additionally, international supply chains have long been working on impact assessments related to environmental sustainability and human rights, meaning the structural foundation for compliance is already in place. The ESRS, i.e the reporting standard is still under revision until mid 2026. In the eman time companies who has started to report should use the original standard.
Relief for Mid-Sized Companies (250-1000 Employees)
The biggest impact of the proposal is the reduced burden on mid-sized companies, those with 250 to 1,000 employees—which often do not have the internal resources, that will now have the option to report on a voluntary basis. Since CSRD primarily focuses on transparency rather than strict compliance with specific sustainability targets, these companies now face less pressure to produce “perfect” reports.
Instead, the emphasis shifts toward disclosure of current sustainability practices, allowing businesses to demonstrate progress over time rather than aiming for immediate full compliance. This flexibility is particularly valuable for companies that are still developing their sustainability strategies and reporting capabilities.
For these organizations, simply being able to produce an honest, transparent report on their status will meet stakeholder expectations. Customers, investors, and partners value transparency and continuous improvement over rigid adherence to predefined benchmarks.
Sustainability Reporting as a Continuous Improvement Process
“Sustainability reporting is not about reaching a final destination—it is a continuous improvement process. Each company must assess its own environmental and social impact and determine how to improve over time to become a better global citizen”, Says Per Linden, founder and CEO of Scandic Sourcing..
With this in mind, Scandic Sourcing has made it a priority to assist companies with voluntary reporting, particularly through the EU Voluntary SME Standard (VSME). This framework provides a structured yet flexible approach for mid-sized companies to begin their sustainability journey, ensuring transparency without excessive compliance burdens.
European Commission - Commission proposes to cut red tape and simplify business environment
For companies looking to navigate voluntary reporting effectively, Scandic Sourcing offers tailored support. To learn more, contact sourcing@scandicsourcing.com.
Read More:
Next: