In March 2025, the European Commission presented the OMNIBUS I proposal, which aims to simplify and streamline the disclosure of sustainability and ESG (environmental, social and governance) reporting. This move is important for both companies and regulators as it will ensure better access to information on environmental and social issues and create a more transparent business environment.
The European Commission estimates that these changes would reduce the number of companies subject to the CSRD by around 80% and significantly reduce the administrative burden while maintaining the EU’s commitment to sustainability. The proposal is expected to save around €6.3 billion in annual administrative costs and mobilise additional public and private investment capacity of €50 billion to support policy priorities.
What is OMNIBUS and why is it important?
OMNIBUS is a set of legislative changes covering a wide range of topics, from environmental regulations to new sustainability disclosure requirements. The aim is to encourage the growth of transparency and accountability among companies involved in sustainable business.
Key points of the OMNIBUS proposal
- Focus on sustainability – OMNIBUS introduces a new regulation that obliges companies to provide more detailed reports on their environmental and social performance.
- Change in reporting standards – Companies will have to comply with new, harmonised rules on ESG disclosure, making it easier to compare performance across different sectors.
- Extended reporting obligations for larger companies – Reporting obligations will also apply to small and medium-sized enterprises, which will have to meet sustainability requirements if they exceed certain thresholds.
Why the changes affect EU firms?
The changes within OMNIBUS can have a major impact on companies, especially those trading in the European market. Sustainability laws are becoming essential for all businesses that want to remain competitive and respond to market and regulatory demands.
Key elements in OMNIBUS
Key change | Description |
| Simplified disclosure rules | Implementation of standardised guidelines for ESG reporting across all firms |
| Introduction of an obligation for larger companies | Obligation of a sustainability report for companies exceeding 250 employees or €40 million turnover |
| Sanctions and compliance control | Stricter control and penalties for non-compliance with ESG disclosure rules |
| Focus on environmental factors | Emphasis on environmental aspects and reducing the carbon footprint of business |
How the changes will affect businesses?
The changes that come with OMNIBUS can have a significant impact on companies in terms of their internal processes and sustainability reporting. Collecting and publishing ESG data will not just be a technical step, but also a strategic one. For businesses, this means an increased need to connect different departments such as finance, legal, and ESG specialists.
Benefits and challenges for businesses
| Benefits | |
| Better transparency | Opportunity to improve corporate image through concrete environmental protection measures |
| Access to new markets | Gaining the trust of customers and investors who prefer sustainable business |
| Challenges | |
| Increase in compliance costs | The firm will need to invest in the right tools and staff to comply with the new regulations |
| Difficult to adapt to new standards | Many firms will need to rethink their systems and processes. |
| Disclosure of ESG data | Regulation will focus on data collection across firms, regular updates and standardisation of standards across sectors, with increased reporting and training costs |
Challenges for small and medium enterprises
SMEs may also be affected if their activities extend into areas that require ESG disclosures. For these companies:
- Adapting to the rules – It can be costly to collect the necessary data and implement systems to monitor their sustainability.
- Limited capacity – Many small businesses do not have sufficient administrative capacity to cope with the new requirements, which can lead to increased costs for external experts.
The OMNIBUS proposal is a revolutionary step towards simplified governance and transparency in sustainability. Companies in the EU must prepare for new regulations and responsibilities that will bring long-term benefits to their business growth and reputation in the international marketplace.
