Towards simplification of sustainability reporting

Key Aspects

• During the next five years, the European Commission (the “Commission”) has proposed to reduce companies’ reporting obligations by 25%, raising this threshold to 35% for SMEs, by implementing various omnibus regulations. 
• On February 26, 2025, the first regulatory simplification proposals were approved. The objective is to reduce the information requirements imposed on companies subject to the CSRD Directive and the trickle-down effects for SMEs.
• The Commission has asked parliament and the council to fast-track these proposals that could be amended during the process.