On Tuesday 24 February, the Council of the EU formally approved the simplification of reporting and due diligence requirements in the area of sustainable development to strengthen the EU’s competitiveness, following the green light given by the Committee of Permanent Representatives on 20 February.
The so-called ‘Omnibus I’ simplification package (see EUROPE 13771/33) simplifies the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CS3D). The scope of the CSRD has been restricted by raising its thresholds to companies with more than 1,000 employees and above €450 million net annual turnover.
The scope of the CS3D has been restricted by raising its thresholds to companies with more than 5,000 employees and above €1.5 billion net turnover. The requirement for companies to adopt a climate change mitigation transition plan under CS3D was removed. Companies will have to comply with the new measures by July 2029.
The Czech Republic opposed the package on 20 February, while Belgium, Bulgaria and Austria abstained. (Original version in French by Solenn Paulic)