After years of taking a leading role in driving the sustainability of the European economy, the European Commission abruptly stepped back earlier this year. The new Omnibus proposal makes substantial cuts to the CSRD: fewer obligations, higher thresholds, and a significant reduction in data points. The question hanging over the market since then: will companies now abandon their green ambitions?
In a recent article in the economic weekly Trends, Mario Matthys, Expert Practice Leader ESG Reporting at TriFinance, together with two other sustainability experts, shares his perspective on the consequences of this policy shift.
Matthys stresses that companies cannot allow their sustainability ambitions to depend on a regulatory snapshot. The value chains they operate in, the financing conditions they must meet, and the credibility they need to maintain continue to demand reliable data and robust reporting. The relaxation changes the context but not the expectations.
Major CSRD reform
The debate on the future of sustainability reporting in Europe has intensified over the past few months. With the Omnibus proposal, the European Commission announced a far-reaching overhaul of the CSRD:
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a drastic reduction in required data points,
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higher thresholds for reporting obligations, and
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a relaxation that could leave up to 80 percent of European companies outside the formal requirements.
While the final provisions are still being developed, the impact on companies is already being felt.
If so many entities no longer fall under the CSRD, what are we even doing? You’re essentially throwing the door wide open to greenwashing again.
The Impact of the Omnibus proposal: From postponement to embedding sustainability
The article “The Omnibus Reversal: an unsustainable step backward in time” (Dutch) clearly maps out this impact. The weekly magazine Trends invited several experts to share their insights on the latest developments. Among them were TriFinance specialist Mario Matthys (Expert Practice Leader ESG Reporting), Katelijne Norga of Pantarein, and Robin Bruninx of Encon.
The piece analyzes how companies are responding to the announced relaxation and what strategic choices they are making in this shifting context.
The article highlights a striking dual dynamic.
On the one hand, uncertainty prevails: many companies are postponing initiatives, pausing projects, or reassessing their sustainability strategies. According to Matthys, the Omnibus proposal is leading to procrastination, especially among SMEs, creating the risk that organizations will only reconnect with data-driven reporting or financing requirements much later.
On the other hand, the article also identifies a group of companies that is choosing to move forward precisely because sustainability had already been embedded in their strategy, and they want to maintain stakeholder trust.
Systemic risks and greenwashing
The experts involved also warn of broader systemic risks. Eliminating hundreds of data points could undermine the quality, comparability, and reliability of reporting.
This increases the risk of greenwashing and a return to the selective communication practices of the previous decade. The relaxation may also affect Europe’s competitive strength: less transparency could mean less innovation and slower long-term progress.
Read more
- Simpler rules ahead for sustainability reporting
- The forgotten 'S' in ESG. Social sustainability as a strategic lever.
- De Omnibusbocht: een weinig duurzame stap terug in de tijd (Dutch - original Trends magazine version)
- How do Belgian organizations handle carbon accounting?
- Europe's Green Deal turns pale
