⚙️ CSRD Revisions: Adjusted Scope and Timing

The Corporate Sustainability Reporting Directive (CSRD) oversees how companies disclose sustainability and ESG information.

The 2025 Omnibus adjusts its application waves to ensure proportionality and ease of compliance.

🏭 Wave 1 – Public Interest Entities and Large Listed Companies

• Previous scope: PIEs with > 500 employees and EU‑listed issuers meeting the same threshold.
• Original reporting: FY 2024 reports in 2025.
• New proposal: The separate PIE category is removed. Only large undertakings with > 1,000 employees remain in scope.
• Entities with 500–999 employees will still submit FY 2024 and FY 2025 reports but are then phased out.

🧾 Wave 2 – Large EU Companies

• Previous definition: Companies exceeding 2 of 3 thresholds – €25 million balance sheet, €50 million turnover, 250 employees.
• New proposal: Applies only to large companies with ≥ 1,000 employees plus either the balance sheet or turnover criterion.
• Timing: Deferred to 2028 for FY 2027.

🧳 Wave 3 – SME PIEs and Listed SMEs

• Original scope: SME PIEs and listed SMEs not classed as small or micro undertakings.
• Change: Removed from scope entirely. If the proposal is adopted, no CSRD reporting is required. Otherwise, reporting is postponed to 2029 (FY 2028).

🌍 Wave 4 – Non‑EU Companies

• Previous criteria: Non‑EU groups with > €150 million EU turnover and subsidiaries or branches meeting set thresholds.
• New proposal:
• Group EU turnover threshold raised to €450 million.
• Subsidiary thresholds aligned to “large undertaking” criteria (SME PIEs scoped out).
• Branch turnover threshold raised to €50 million.
• Timing: Unchanged (Reporting in 2029 for FY 2028).

🔍 Further CSRD Clarifications

• Reporting entities must not solicit additional ESG data from SMEs beyond what voluntary standards require.
• Listed SMEs may apply Voluntary ESRS instead of mandatory standards.
• Sector‑specific standards will no longer be issued.
• ESRS data points will be reduced, simplifying reporting.
• Limited assurance guidelines are expected by 2026; reasonable assurance requirements have been removed to manage costs.

📜 CSDDD Updates: Refined Due Diligence Phasing

The Corporate Sustainability Due Diligence Directive (CSDDD) sets obligations for companies to identify, prevent, and mitigate human rights and environmental impacts throughout their operations and supply chains.

🏢 Wave 1 – Very Large Companies

• Scope: EU companies > 5,000 employees and €1.5 billion turnover; non‑EU companies with €1.5 billion EU turnover.
• Original application: July 2027.
• New timing: July 2028, first reports in 2030 for FY 2029. Aligns wave 1 with wave 2.

🌐 Wave 2 – Large Entities

• Scope: EU companies > 3,000 employees and €900 million turnover; non‑EU companies with €900 million EU turnover.
• Timing: Unchanged – July 2028 onwards.

🤝 Wave 3 – Mid‑Size Companies and Franchises

• Scope:
• EU entities > 1,000 employees and €450 million turnover.
• Non‑EU companies with €450 million EU turnover.
• Franchising or licensing entities with €22.5 million royalties and €80 million turnover.
• Timing: July 2029, first reports in 2030 for FY 2029.

🧠 Additional CSDDD Adjustments

• Proportionality approach: Phase‑in extended for very large companies.
• Climate transition plans remain compulsory with minor refinements.
• Focus on direct business partners; indirect suppliers addressed only if credible risk information exists.
• Information requests to SMEs restricted to voluntary reporting standards.
• Penalties: Member States are to define national financial sanctions; the former 5% global‑turnover minimum cap is removed.
• Harmonisation: Member States may not adopt stricter due diligence obligations than those set by the EU.

✅ EU Taxonomy Revisions: Streamlined Reporting

The EU Taxonomy Regulation continues to define environmentally sustainable economic activities.

Under the Omnibus update:

• Applies primarily to large companies with > 1,000 employees and €450 million net turnover.
• Voluntary reporting is allowed for large companies below the €450 million turnover threshold.
• Simplified templates reduce disclosure requirements:
• 66% data points for non‑financial undertakings.
• 89% data points for credit institutions.
• Certain financial KPIs for banks and credit institutions are deferred until 2027.

These changes promote simpler and more consistent taxonomy implementation while retaining environmental integrity.

🛡️ Implications for Compliance Teams

The Omnibus simplifies ESG compliance requirements but demands close monitoring of scope transitions and timing.

Companies must prepare for:

• Adjusted reporting calendars for CSRD disclosures.
• New threshold‑based scope definitions for CSDDD.
• Streamlined yet robust Taxonomy templates.

Proactive alignment with these rules will help sustain credibility and assure regulatory readiness across value chains.

🤝 How ComplyMarket Supports Sustainability Compliance

ComplyMarket helps businesses navigate the EU’s rapidly evolving ESG landscape by providing:

• Expert advisory on CSRD, CSDDD, and Taxonomy application.
• Verification of corporate readiness and reporting structures.
• Guidance on assurance requirements and timeline adaptation.
• Practical support for large and non‑EU companies seeking alignment with EU sustainability rules.

With clarity and compliance at the core, organizations can confidently transition under the 2025 ESG Omnibus framework — supported by ComplyMarket.