Corporate Sus­tain­abil­i­ty Reporting Directive (CSRD)

Date of Adoption:
14-Dec-22

Omnibus Packages
On 26 February 2025, the European Commission adopted the Omnibus packages, targeting the CSDDD, CSRD, Taxonomy, and CBAM, with a focus on reducing the complexity of EU requirements for all businesses, especially SMEs and small mid-caps (SMCs).

Key changes expected for this regulation (CSRD):

• Smaller companies no longer included: Only very large companies (with over 1,000 employees and either over €50 million in sales or €25 million in assets) now have to follow the reporting rules. This means about 80% fewer companies are affected. Currently regulation requires reporting for SMEs with securities listed on the EU regulated markets.
• Simpler reporting: Smaller companies that are not required to report can still choose to do so using an easier, voluntary reporting format designed for them - Voluntary SME (VSME) standard.
• More time to prepare: Companies that were supposed to start reporting in 2026 and 2027 now have two extra years.
• Easier reporting requirements: The European Sustainability Reporting Standards (ESRS) will be made clearer and will ask for less data.
• No sector-specific rules and lighter checks: There will be no extra rules based on industry type, and companies will only need a basic check of their reports, not a full audit.
• Green activity reporting (Taxonomy) made optional: Large companies with less than €450 million in sales can choose whether or not to report how much of their business aligns with the EU’s environmental sustainability criteria.

Key takeaways on reporting timeline

14-Dec-22 | CSRD (EU) 2022/2464: Originally phased in 2025-2028, depending on company size/type.

14-Apr-25 | Stop-the-Clock (2025/794): Shifts Wave 2 to 2028 and Wave 3 to 2029 (two-year delay). Wave 1 remains in 2025.

11-Jul-25 | Quick Fix (2025 Delegated Act …/... ): Applies to Wave 1 companies, allows them to omit certain ESRS disclosures also in 2025-2026.