The EU has finalized measures to simplify and delay the application of key sustainability regulations, providing businesses with greater clarity and planning certainty. The changes follow the Omnibus package introduced earlier in 2025 and include amendments to the Corporate Sustainability Reporting Directive (CSRD), Corporate Sustainability Due Diligence Directive (CSDDD), and related frameworks. The EU Parliament approved the amendments, and EFRAG released revised European Sustainability Reporting Standards (ESRS) to streamline reporting obligations. Updates to the EU Taxonomy, adopted in July 2025, will apply from January 2026, and targeted simplifications and delays to the EU Deforestation Regulation (EUDR) were also endorsed.

In February 2025, the EU Commission introduced the Omnibus Simplification Package to streamline sustainability regulations. This package includes two proposed Directives: the “Stop-the-clock” Directive, which proposes delaying the CSRD and CSDDD compliance timelines, and a second Directive that suggests substantive changes to both the CSRD and CSDDD. The “Stop-the-clock” Directive is now close to being approved, giving businesses more certainty on the timeline for compliance.

On 26 February 2025, the European Commission adopted the Omnibus Simplification Package, aimed at reducing regulatory burdens related to sustainability reporting for European companies. This initiative amends several key directives, including the Corporate Sustainability Reporting Directive, the Corporate Sustainability Due Diligence Directive and the EU Taxonomy Regulation.
These proposals aim to streamline reporting obligations, enhance competitiveness and adjust the scope and timelines of existing regulations.