EU Commission Omnibus: Key Developments for Irish Businesses
The European Commission has announced the details of the first of its Omnibus packages, which aim to simplify sustainability reporting requirements and boost competitiveness across the EU.
Today's new package of proposals, which will now go forward to the European Parliament and Council for consideration, signals a fundamental shift in approach to sustainability regulation - with a considerable reduction in the number of companies in scope for CSRD and CSDDD and heavily simplified reporting requirements.
What does this mean for both Irish and multinational companies?
- The changes announced have a significant impact on both Irish and multinational companies. It is anticipated that over 80% of undertakings that were previously in-scope of sustainability reporting requirements (CSRD and EU Taxonomy) will now no longer be subject to mandatory disclosures. In practical terms, it is likely that 50,000 undertakings previously in scope may now reduce to less than 10,000.
- The Commission also proposes to postpone the entry into application of reporting requirements for wave 2 and wave 3 companies for two years. There are approximately 20 undertakings reporting in Ireland under the CSRD in 'Wave 1' (i.e. financial periods beginning on or after 01 January 2024).
- These entities will continue to report in line with the CSRD, and resultingly the ESRS's and EU Taxonomy in future years. It was expected that approximately 1,000 undertakings would report in Ireland from 'Wave 2' onwards (i.e. financial periods beginning on or after 01 January 2025).
- However, under the proposals noted, all Wave 2 and 3 reporters will be postponed by two years to 2028.
The EU Commission is due to publish their proposal for small mid-cap undertakings in Q2 2025. Read our full analysis of the latest development is available in the latest iGAAP in Focus publication.
To discuss how your business has been impacted by these changes, reach out to a member of our team below.
