Storm about ESG: Will 80% of Companies Be Released from CSRD Reporting?

Wastebusters Weekly, ESG News curated by Danuta Pawlik

Mar 01, 2025

Dear Readers,

It will probably not surprise you that I am still focusing on Omnibus legislation packaging (Omnibus I and Omnibus II), covering the most important ESG reporting requirements in Europe linked to CSRD, EU Taxonomy, and CSDDD. This time, we have some more concrete news. Last week, the EU announced proposed changes. I could not believe what I was reading. 80% of companies would be cut from the scope of CSRD, and those which remain would be postponed by 2 years with the first reporting obligations. Huge changes. All in details for proposals with link to official websites you find below.

Do I have a strong opinion on those Omnibus proposals? Yes, I do. I think that we cannot easily change something that is not measured. We need statistics, metrics, tables with all our sustainability matters to see where we are and take the actions needed. And we all know, these actions are needed now. I was hoping that we would have a simple roadmap presented by the EU on how to start presenting these measures. Step by step. For all, big and small. For the first years of reporting, it could be 20 data points with the most urgent numbers, maybe GHG emissions, waste, water. Simple questions, simple answers. Instead, the EU prepared a monster. As I was reading ESRS standards, I felt stupid, lost. I needed advisors, lawyers, experts to translate it to me. We needed months to understand the structure of the report. Yes, for me, CSRD and Taxonomy are regulatory monsters. I was not happy with the monster, but I already got used to it and I think it would be better to stick to the plan. Better to have this monster than nothing, or almost nothing.

Around 30% of companies in scope in the EU took a chance to prepare for these changes. Investing thousands of euros, engaging people inside and outside of the company, preparing ESG catalogues, starting processes because they wanted to be ready. Now the EU says, we cannot have this monster anymore. People do not like it. The USA does not like it. It is too complicated. So they just want to throw it away.

I do not think it was an accident that the same week we were also presented with more details to the EU Plan for the Clean Industrial Deal. Do I like it? The plan looks good. Also, money is allocated to the plan. But still, Omnibus is a bit shadowing my enthusiasm.

In today's edition:

Omnibus: EU Commission Proposes Changes
Clean Industrial Deal: A Plan for EU Competitiveness and Decarbonisation
Stricter EU Waste Export Regulations and Global Implications
Mobile Industry's Shift to a $150B Circular Economy

EU Commission Proposes Omnibus to change ESG legislations

Omnibus I and Omnibus II are two major directive proposals published by the European Commission on February 26, 2025. Collectively, these packages are referred to as "Omnibus."

Omnibus I is referring to other Directives: (EU) 2022/2464 Corporate Sustainability Reporting Directive (CSRD) incl. EU Taxonomy and (EU) 2024/1760 Corporate Sustainability Due Diligence Directive (CSDDD).

Omnibus II is linked to European Fund for Strategic Investments, InvestEU Regulation, Regulation establishing Horizon Europe – the Framework Program for Research and Innovation, Connecting Europe Facility (CEF).

Let’s focus on Omnibus I today:

Proposal to CSRD:

To Reduce the number of undertakings subject to mandatory reporting by about 80%.
Only large undertakings with more than 1000 employees and either a turnover above EUR 50 million or a balance sheet above EUR 25 million would be required to report.
Revised ESRS: The European Sustainability Reporting Standards will be revised to reduce data points and improve clarity.
Postponed Reporting: Reporting requirements for large companies and listed SMEs would be postponed by two years.
Value-Chain Cap: Extended and strengthened to apply directly to the reporting company.
Sector-Specific Standards: No sector-specific reporting standard.
Assurance Requirements: Remove the possibility of moving from limited assurance to reasonable assurance.

Proposal to EU Green Taxonomy:

Scope of Application: Introduce a threshold to make disclosure of alignment for companies with less than 10% eligible activities not mandatory.
Remove taxonomy reporting for companies with net turnover not exceeding €450 million if they don’t claim Taxonomy-alignment.
Reduction of data points by almost 70%.
Simplify and make GAR more useful for banks.
Simplify certain DNSH criteria.

Proposal to CSDDD

Due date for compliance: deadline could be postponed to 2027 and the first phase of application to 2028
Due Diligence: Reducing the complexity of due diligence requirements and extending the intervals between assessments from one year to five years.
SME Protection: Limiting information requests from large companies to SMEs and small mid-caps to the information specified in the voluntary standards.
National Civil Liability: Deferring to national civil liability regimes and removing harmonized EU conditions2.

These proposals await negotiation with the European Parliament and Council, with the Commission urging a fast-track process.

More details on: Q&A on simplification omnibus I and II

Clean Industrial Deal: A Plan for EU Competitiveness and Decarbonisation

The Clean Industrial Deal aims to support European industries facing high energy costs and global competition by turning decarbonisation into a growth driver. Key measures include:

Affordable Energy: Lowering energy prices and promoting clean energy through the Affordable Energy Action Plan.
Boosting Demand for Clean Products: Increasing demand for EU-made clean products with the Industrial Decarbonisation Accelerator Act.
Financing the Clean Transition: Mobilising over €100 billion to support clean manufacturing and innovation.
Circularity and Access to Materials: Promoting recycling, reuse, and sustainable production to reduce waste and dependence on third-country suppliers.
Global Partnerships: Launching Clean Trade and Investment Partnerships to diversify supply chains and ensure economic security.
Skills and Quality Jobs: Investing in workforce skills and creating quality jobs through the Union of Skills and Erasmus+ programs.

The Deal focuses on energy-intensive industries, the clean-tech sector, and circularity to create a competitive and resilient market. It also aims to cut red tape, fully exploit the Single Market, and better coordinate policies at the EU and national levels.

Read more on the official EU page

EU Waste Export Regulations: Non-OECD Countries' Eligibility Requests

The EU's new Waste Shipments Regulation, aligned with the European Green Deal, mandates stricter waste export rules, including a full ban on plastic waste exports by November 2026.

Non-OECD countries must request eligibility to import non-hazardous EU waste by February 21, 2025.
24 countries, including India, Nigeria, and Vietnam, have submitted requests to import waste post-May 2027.
The European Commission will assess these requests, with the first authorized list due by November 2026.
Countries not on the list by May 2027 will be prohibited from importing EU waste.

Mobile Industry Embraces Circular Economy with $150B Market Potential

The mobile industry is witnessing a shift towards sustainability, driven by consumer demand and regulatory changes.

The circular market for mobile devices is projected to exceed $150 billion by 2027, according to a GSMA report.
90% of surveyed operators already implement circular business models, focusing on refurbishment and e-waste management.
85% of global consumers prioritize sustainability over aesthetics and AI capabilities when purchasing devices.
The report estimates 5-10 billion dormant devices worldwide, containing valuable materials worth $20 billion.
Repairing and refurbishing devices can cut carbon emissions by 80-90% compared to manufacturing new ones.

"Fast-growing consumer demand for green and refurbished phones...is a fantastic business opportunity," said Steven Moore, Head of Climate Action, GSMA.

Wastebusters Weekly