The European Commission (EC) has recently adopted new proposals aimed at cutting red tape and simplifying EU rules for business. The measures will focus on the largest companies that have a greater impact on people and the environment, while easing the burden on smaller companies.

The Omnibus Package proposes changes to the Corporate Sustainability Reporting Directive (CSRD) to make it more proportionate and easier to implement. The main change is the increase in the thresholds for the number of employees and turnover, which reduces the number of companies affected by around 80%.

These changes will allow businesses to focus on achieving sustainability (ESG) goals without having to produce voluminous reports that do not meet their needs. An important aspect is the synchronization of ESG goals with company objectives so that they can be proactive rather than reactive to regulations.

Reporting standards will be simplified to make them easier to use and interpret, and a simpler voluntary standard for small and medium-sized enterprises will be developed. In the past, large companies often required small suppliers to comply with the same ESG standards, which was difficult for them. The aim of the package is to make European companies more competitive, without compromising on the principles of sustainable development, and to prevent unfair competition.