On 23 June 2025, the Council of the European Union adopted its General Approach on the Omnibus I Simplification Package, aiming to reduce the regulatory burden of the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD). The changes significantly narrow the scope of both directives, limiting obligations to only the largest companies.
Under the agreed Council position on to revise the CSRD, only firms with over 1,000 employees and €450 million in turnover would be required to report. SMEs, including listed ones, would be fully excluded from its scope. A free digital portal will be developed to help companies comply, and only “reasonably available” data would be required for reporting. In turn, the CSDDD would apply only to companies with over 5,000 employees and €1.5 billion in turnover. Due diligence will follow a risk-based model, and binding climate transition plans have been replaced by non-binding action outlines. The implementation deadline would be postponed to July 2028. The Council’s approach also recognizes the importance and role of the Voluntary SME reporting standard for voluntary reporting by companies.
In parallel, the European Parliament is still developing its position, with internal work led by Rapporteur Jörgen Warborn (EPP, Sweden) and shadow rapporteurs currently ongoing. In May, the rapporteur proposed further easing of the rules in his draft report, including higher thresholds and removing detailed climate plan requirements.
EBC welcomes these developments, noting that the Council’s approach is in line with the recommendations outlined in the EBC position paper published in February. EBC has long advocated for a more proportionate framework that avoids placing indirect reporting burdens on construction SMEs. The current direction of the debate signals that EU policymakers are taking these concerns seriously and are moving toward a more balanced and workable sustainability reporting regime. EBC will continue to closely collaborate with policymakers and all stakeholders to make sure sustainability reporting rules are fir for the needs of construction SMEs.
To read the EBC position paper on the Omnibus Simplification Package of the European Commission, (CSRD, Taxonomy & CSDDD) click here
To read the EU Council’s General Approach on the Omnibus I click here
To read the draft report on the Omnibus I by Rapporteur Jörgen Warborn (EPP, Sweden) click here
