EU Omnibus: The Latest Changes on CSRD, CS3D and EU Taxonomy
Updated April 4, 2025
The EU regulatory landscape has seen significant shifts, leaving sustainability leaders wondering: what’s next, and how should we prepare?
With much back and forth around the EU Omnibus – a proposal that would introduce key changes to the CSRD, CS3D and EU Taxonomy – it’s easy to get caught up in the uncertainty. But staying informed is key. That’s why we’ve outlined the latest changes, their implications for your business and how to move forward effectively.
About the EU Omnibus: Some Background
The Omnibus simplification package was proposed by the EU on February 26, 2025 to enhance the region’s global competitiveness by reducing the sustainability and due diligence regulatory burden for smaller companies. Among the proposed changes, key updates include deadline delays, scope reductions, and streamlined reporting requirements.
Below, we break down the latest updates and what they mean for your business.
Latest Update: EU Votes to Delay Reporting Deadlines
On April 3, 2025, the EU Parliament approved the EU Omnibus “Stop The Clock” proposal, officially delaying compliance deadlines for CSRD and CS3D. Here’s what has changed:
CSRD
Delayed two years for companies not yet reporting (now 2028 for wave 2, 2029 for wave 3).
No change to wave 1 companies (reporting this year on 2024 data) and non-EU companies (reporting beginning in 2029).
Not sure which reporting wave applies to your business? Our charts below outline the details.
CS3D
Incorporation into each country’s laws has been delayed one year to 2027.
Application for large companies has been pushed to 2028.
What’s Next?
With the delay officially approved, the EU Commission now moves to implement these changes and finalize the remaining provisions of the Omnibus proposal. EU member states must then transpose the directive into national law by December 31, 2025.
EU Omnibus: Breaking Down the Key Changes
Below, we outline the core elements of CSRD, CS3D, and EU Taxonomy under current regulations and how they would change if the rest of the EU Omnibus proposal is adopted as drafted.
CSRD: What’s Changing?
CSRD: Cutting Through the Noise
For sustainability leaders, the key takeaway is to remain proactive. While delays are confirmed, the expectation for transparency and data-driven strategy remains. Companies that build strong sustainability reporting frameworks will stay ahead – meeting investor, consumer and regulatory expectations with confidence.
CS3D: What’s Changing?
CS3D: Cutting Through the Noise
The push for corporate due diligence remains strong. With the delay officially approved, businesses have more time to refine their supply chain risk assessments and due diligence processes. Rather than pausing efforts, use this period to strengthen internal controls and assess what gaps might exist in current business operations.
EU Taxonomy: What’s Changing?
EU Taxonomy: Cutting Through the Noise
The main changes that would come if the Omnibus proposal passes are important reductions in (1) scope for mandatory reporting, and (2) required datapoints.
Voluntary reporting would become a key feature under a new “Opt-in Regime,” where reporting is only required if a company claims its activities qualify as sustainable (either partially or fully) under the EU Taxonomy regulation. If no claims are made, no reporting is required, regardless of size.
Next Steps for Businesses:
Stay Ahead by Focusing on Value Creation and Business Resilience
Regulatory timelines have shifted, but businesses that proactively integrate sustainability will maintain a competitive edge. With California advancing its climate disclosure laws and investor expectations rising, now is the time to focus on long-term resilience, value creation, and strong sustainability governance.
Download our Sustainability Regulations Timeline here to keep up with the latest regulatory shifts — we update it regularly to reflect key changes and keep you informed.
If you’re struggling to get leadership on board with climate initiatives, our Stakeholder Engagement Guide offers you proven strategies to:
Align sustainability with business goals
Secure executive support
Drive meaningful impact