EU EASES COMPLIANCE REQS IN “EU OMNIBUS PACKAGE”

What is the long-term impact on EU companies and their accountants of the recent European Commission’s “EU Omnibus Package”, which proposes to reduce the administrative burden for businesses operating in the EU by easing compliance requirements under several key EU ESG laws, including the CSRD and the CS3D? Key changes include a reduction of affected companies, postponed reporting deadlines, and decreased data points. While the changes aim to strengthen the EU’s competitiveness, it might lead to the opposite, by causing inconsistent sustainability reporting, regulatory uncertainty and a delay in sustainability investments. The first market reactions imply that a lack of a clear framework will lead to more bureaucracy and weaken the competitiveness of businesses, since other parts of the world, such as Japan and China, shift towards tighter sustainability regulations. Besides, since the proposal still needs to be approved by the European Parliament and the European Council, what is the impact for EU companies already working on the current requirements? What do companies think about the changes introduced at this point? Are they happy with the delay? We would talk to accountants and EU companies in different situations.