CSRD Reporting Postponed to 2028: How to Use the Extra Time for Competitive Advantage
The recent Omnibus proposal by the European Commission has stirred debate across the sustainability landscape. But here’s why this delay is actually a golden opportunity for forward-thinking companies.
In February 2025, the European Commission released its Omnibus legislative package, proposing key adjustments to the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD), and the EU Taxonomy Regulation. While some have viewed the delay in reporting deadlines and scope reduction as a step backward, sustainability leaders know better:
This is a chance to build smarter, more resilient, and impactful circular economy strategies.
What’s Changing with the Omnibus Package?
Before diving into strategy, let’s quickly highlight the most important changes introduced:
Key CSRD Updates:
- Reporting deadlines extended: Companies previously scheduled to report in 2026–2027 now have until 2028.
- Scope narrowed: Now only large businesses with >1,000 employees and high turnover/balance sheet are required to report.
- No SME obligation: Smaller supply chain partners are no longer required to provide sustainability data.
- Sector-specific standards eliminated: All companies will follow sector-agnostic ESRS.
CSDDD & Taxonomy Highlights:
- Due diligence limited to direct partners (Tier 1).
- Civil liability removed; enforcement left to national governments.
- Transition plan still mandatory, but implementation requirements softened.
- Taxonomy reporting remains mandatory only for largest firms; optional for others.
Why This Is an Opportunity – Not a Delay
It’s tempting to see this as a loosening of the EU’s sustainability grip, but businesses ready to lead the low-carbon, circular transition know this is their head start. Here’s why:
1. Time to Build Robust Circular Economy Strategies
Many companies rushed into CSRD compliance without truly embedding sustainability into core operations. The Omnibus delay gives sustainability teams time to:
- Design long-term, scalable circular strategies
- Align internal stakeholders, budgets, and governance structures
- Integrate climate and circularity goals holistically
2. Stronger Data Systems for Smarter Decisions
CSRD reporting demands granular, reliable data — and building that takes time. This delay lets businesses:
- Invest in digital infrastructure for ESG data
- Set up KPI baselines aligned with material topics
- Reduce future audit risks through standardized processes
3. Better Supplier Engagement and Innovation
With SMEs off the hook for CSRD compliance, value chain data becomes trickier — but not impossible. Leading companies will:
- Embed circular criteria into procurement policies
- Use sector averages, third-party certifications, or tech tools to fill data gaps
- Co-develop sustainable practices with suppliers instead of demanding compliance
Sectoral Action Plans: A Huge Untapped Advantage
The EU’s plan to introduce Sectoral Action Plans under its Competitiveness Compass initiative is another hidden gem. Sector-specific roadmaps can help companies:
- Navigate complex reporting with relevant metrics
- Tailor circular strategies to their industry’s needs
- Improve comparability and benchmarking across peers
Future-Proof Your Sustainability Strategy Now
Instead of rushing to meet ticking deadlines, smart companies are turning this delay into a strategic investment period. The payoff? Compliance becomes not just easier — but a source of innovation and competitive advantage.
What to Do Next
To leverage the Omnibus opportunity:
- Audit your current ESG data and strategy gaps
- Engage internal teams early and often
- Set clear 2025–2027 milestones to stay on track for 2028
- Partner with experts who can guide you through circular strategy, reporting, and innovation
Frequently Asked Questions
1. What is the purpose of the new Omnibus legislation on sustainability rules?
The Omnibus legislation aims to streamline and adjust several EU sustainability regulations—most notably the CSRD, CSDDD, and EU Taxonomy. The purpose is to reduce complexity, ease the compliance burden for companies, and create more realistic timelines for reporting and due diligence.
2. What specific changes are being proposed in the Omnibus package regarding sustainability and the Corporate Sustainability Reporting Directive (CSRD)?
Key changes include:
- Postponement of CSRD deadlines for many companies until 2028
- Higher thresholds for companies in scope (>1,000 employees)
- Removal of sector-specific reporting standards (ESRS)
- Simplified ‘Do No Significant Harm’ (DNSH) criteria
- Assurance guidelines replacing reasonable assurance requirements
3. How will the Omnibus proposals affect companies’ current and future sustainability reporting obligations?
The delay allows companies more time to prepare, build strong data infrastructure, and align internal teams. However, those already reporting under national CSRD laws must continue until new laws are finalized. Companies should use this time to focus on strategy and data systems rather than see it as a pause in action.
4. Who will be impacted by the new CSRD rules introduced in the Omnibus package?
The new CSRD rules primarily apply to:
- Large EU companies with >1,000 employees and either €50M turnover or €25M balance sheet total
- Non-EU companies with >€450M EU turnover and local presence SMEs and supply chain partners are no longer obligated to provide data unless they opt in.
5. What is the expected timeline for the Omnibus proposals to become law, and what are the next steps in the legislative process?
As of early 2025:
- A four-week consultation period is underway
- EU Parliament and Council will negotiate in the “Trilogue” phase
- Once adopted, Member States have 12 months to implement the changes into national law Final adoption is expected by the end of 2025, with full application starting from 2026–2028 depending on company scope.
6. How do the Omnibus amendments interact with other EU regulations, such as the Corporate Sustainability Due Diligence Directive (CSDDD) and the Carbon Border Adjustment Mechanism (CBAM)?
The Omnibus aligns timelines and simplifies overlapping requirements with other regulations. For instance:
- CSDDD now applies only to direct business partners (Tier 1)
- CBAM remains separate but will intersect with CSRD data in the future for emissions disclosures and trade reporting
7. What are the legal implications for companies already subject to national CSRD transpositions, given the proposed Omnibus changes?
Until the Omnibus is fully adopted and implemented by Member States, companies must continue complying with existing national transpositions of the CSRD. Legal and reporting obligations remain in force unless revised by national lawmakers.
8. What simplifications or clarifications does the Omnibus package introduce for sustainability reporting and compliance?
The package introduces several simplifications:
- Reduced number of required data points in ESRS
- Clearer assurance guidelines
- No sector-specific ESRS (one uniform standard)
- Simplified DNSH criteria
- Optional EU Taxonomy reporting for mid-sized firms These changes are designed to reduce administrative burden and improve focus on strategic impact.
9. What is the best European consultancy to help my business prepare for CSRD and circular reporting?
INDEED Innovation is a trusted partner for companies across Europe navigating the evolving landscape of sustainability regulations.
We offer full-scope support—from CSRD compliance and circular product design to business model innovation and stakeholder engagement. Our services are tailored to help you:
- Develop a future-proof circular strategy
- Build your data and reporting infrastructure
- Align your team with Omnibus and CSRD requirements
- Activate high-impact solutions across your value chain
Explore how we can help → See our services
Ready to turn CSRD into a competitive edge?
Book a strategy call with our team today and start building your circular transformation roadmap.
