After a number of rounds of drafts, the EU Council has signed off on its position regarding the revisions to CSRD and CSDDD brought about by the Omnibus.
The big ticket changes proposed by the Council largely focus on CSDDD, notably:
- Significantly raising the application threshold only to companies with over 5000 employees, and
- Pushing back transposition by another year, to July 2028, meaning compliance from 2029 at the earliest.
It also looks like the Council has listened to concerns around the much-debated requirement for firms to have a transition plan: "The obligation to put into effect these plans is replaced by a clarification that this transition plan includes outlining implementing actions (planned and taken).... To further reduce burdens and provide companies with sufficient time for adequate preparations, the Council also postpones the obligation to adopt transition plans by two years."
Next steps: the Parliament will need to sign off on its own position on Omnibus, then let the trilogues begin!
Simplification: Council agrees position on sustainability reporting and due diligence requirements to boost EU competitiveness
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