The new EU Omnibus Regulation: less bureaucracy, more efficiency for companies

The European Commission has officially adopted the Omnibus Regulation. The aim of this reform is to simplify existing regulations on ESG reporting obligations, sustainability requirements and due diligence obligations in the supply chain and to reduce bureaucracy. But what exactly does the EU Omnibus Regulation mean for companies in practice?

What is the EU Omnibus Regulation?

The EU Omnibus Regulation is an initiative of the European Commission that aims to streamline reporting obligations on environmental, social and governance (ESG) aspects. Existing regulations such as the Corporate Sustainability Reporting Directive (CSRD), the EU Taxonomy Regulation and the Corporate Sustainability Due Diligence Directive (CSDDD) are to be merged and simplified. According to the European Commission, this reform is intended to relieve over 85% of companies of certain reporting obligations. This applies in particular to small and medium-sized enterprises (SMEs). The EU Commission wants to achieve this by increasing threshold values, reducing redundant regulations and focussing more clearly on larger companies. The assumption is that larger companies have a significant impact on climate issues.

Reasons for the new regulation

The European Commission has taken into account feedback from stakeholders who consider individual provisions on sustainability reporting and due diligence to be complex and cost-intensive. Stakeholders had criticised, among other things, that the benefits for investors and other stakeholders were limited, which could potentially have an impact on the EU’s competitiveness and attractiveness for investment.

Against this backdrop, the European Union is pursuing the goal of linking competition and climate policy more closely in order to relieve the burden on companies, promote investment and realise economic potential. At the same time, the EU should achieve common goals such as the European Green Deal.

The European Commission has announced its intention to reduce the administrative burden by at least 25% by the end of the current term of office, and by at least 35% for small and medium-sized enterprises (SMEs). To this end, the EU Commission has presented so-called ‘omnibus’ packages that bring together various areas of law and provide for simplifications in reporting on sustainable finance, due diligence in the area of sustainability, the EU taxonomy, the carbon border adjustment mechanism and European investment programmes, among other things.

These measures are intended to reduce the complexity of EU requirements, particularly for SMEs and smaller companies with medium capitalisation. At the same time, larger companies, which are likely to have a greater impact on the climate and environment, are to be given greater regulatory focus. There are also plans to facilitate access to sustainable financing in order to support the transition to a more climate-friendly economy.

What specific changes does the regulation bring?

The planned changes to the EU Omnibus Regulation will result in numerous advantages for companies:

 The measures adopted include:

• Simplification of sustainability reporting (CSRD) Companies with fewer than 1000 employees and an annual turnover of less than 450 million euros will be exempt from the reporting obligation in future. The obligation to disclose detailed sustainability information will no longer apply to many companies. Sector-specific reporting standards are to be cancelled or postponed. Companies that do not fall within the scope of the CSRD (companies with up to 1,000 employees) can opt for voluntary reporting on the basis of a simplified voluntary standard to be adopted by the Commission, which is based on the voluntary standards for SMEs (Voluntary SME Standard) developed by the European Financial Reporting Advisory Group (EFRAG). The number of reportable ESG data fields will be reduced in order to make reporting more efficient.
• Adaptation of the due diligence obligations (CSDDD) Companies must focus primarily on their direct business partners and are no longer obliged to fully analyze entire supply chains up to the raw material suppliers. The EU-wide liability regime no longer applies – instead, claims for damages are regulated by national legislation. The implementation of the CSDDD will be delayed to give companies more planning security. Translated with DeepL.com (free version)
• Optimization of the Carbon Border Adjustment Mechanism (CBAM) The aim is to regulate the carbon border adjustment mechanism more efficiently in order to ensure fair competition. The reporting obligations for importers are being reduced in order to cut red tape. It is being examined whether certain forms with up to 300 data fields can be streamlined or digitized.
• General reduction of administrative burdens The EU Commission has set itself the goal of reducing bureaucratic requirements for companies by 25% overall and by 35% for SMEs by 2029. There are also plans to simplify or abolish redundant reporting obligations in order to avoid overlaps between different EU directives.

Challenges of the EU Omnibus Regulation

Despite the benefits, the reform also brings challenges. The EU Omnibus Regulation means a noticeable reduction in the administrative burden for many companies. At the same time, companies that have previously invested in sustainability reporting must check which new requirements specifically apply to them. Larger companies in particular, which remain subject to reporting requirements, should prepare for the new regulations at an early stage.

Regulations for small and medium-sized enterprises (SMEs)

Small and medium-sized enterprises (SMEs), with the exception of listed SMEs, are not currently subject to the reporting requirements of the Corporate Sustainability Reporting Directive (CSRD). In practice, however, many of them are nevertheless required to disclose sustainability information – especially if they are part of the value chain of larger companies or have to serve financial institutions such as banks with corresponding requirements.

In order to limit this indirect “trickle-down” effect, the European Commission has presented a proposal to prevent companies outside the scope of the CSRD from being subject to excessive reporting obligations. The plan is to introduce a voluntary reporting standard for all companies not affected, including SMEs. This standard is based on the voluntary standard for SMEs (VSME) developed by EFRAG and is to be adopted by delegated act.

With this measure, the EU is aiming to strike a balance between transparency requirements and administrative relief for smaller companies. It remains to be seen what effect the voluntary standard will have in practice and whether it will actually reduce the pressure on SMEs.

BAMAC Group – Your partner for compliance & sustainability

The changes to the EU Omnibus Regulation 2025 clearly show how regulatory requirements in the area of sustainability and compliance are evolving. Companies need to adapt their strategies in order to minimize risks and take advantage of new opportunities. The BAMAC Group supports you in successfully integrating the new regulatory requirements of the EU Omnibus Regulation into your corporate strategy. The BAMAC Group supports you in successfully integrating the new regulatory requirements of the EU Omnibus Regulation into your corporate strategy. Our experts offer you tailor-made solutions in the following areas:

• Efficient integration of ESG criteria: Together we develop strategies to anchor sustainability in your business processes in the long term.
• Training courses & workshops: We prepare your team specifically for the new requirements and strengthen your compliance expertise.
• Optimization of your sustainability reporting: We help you to adapt your ESG reports to the new requirements.

Are you already familiar with our webinar “Value driver compliance & sustainability”

Our webinar offers clear answers and practical approaches to the questions of how compliance and sustainability can contribute to a company’s success. We will show you how you can use sustainability not just as a compulsory exercise, but as a real value driver. Our approaches focus on value-oriented implementations that create substance and competitive advantages – far removed from purely bureaucratic approaches. Watch the recording right now.

Conclusion: act now and secure competitive advantages

The EU Omnibus Regulation 2025 marks a significant step towards more efficient regulation. Less bureaucracy, clearer requirements and more targeted reporting obligations will reduce the burden on small and medium-sized enterprises in particular. At the same time, sustainability and compliance remain key competitive factors that companies can use strategically.

Those who adapt to the new requirements at an early stage can minimize regulatory risks and at the same time take advantage of opportunities for sustainable growth and investment. With the right strategy, compliance and ESG requirements can not only be implemented efficiently, but can also be used as a competitive advantage.

Take advantage of our expertise! The BAMAC Group supports you in optimally aligning your sustainability strategy. Contact us for an individual consultation!