Sustainability reporting: what the EU Council is defending on the omnibus

Sustainability reporting: what the EU Council is defending on the omnibus

Gegevens

Nummer
2025/58
Publicatiedatum
2 juli 2025
Auteur
Editorial staff
Rubriek
News

On 25 June, the representatives of the EU Member States adopted their negotiating position on the text amending the CRSD. Thresholds, double materiality, ESRS and VSME standards: details of the main points endorsed by the Member States.

The Polish Presidency has succeeded. The representatives of the Member States have agreed on the amendments to be made to the second omnibus text proposed by the European Commission in February. This text is intended to carry out an in-depth review of the obligations imposed on companies with regard to the sustainability information to be presented in their annual management reports.

The Member States are in favour of the following elements.

Raising the thresholds for sustainability reporting

Raising the thresholds: the representatives of the Member States would like the sustainability report, from 2028 (based on 2027 data), to be imposed only on companies - and their parent companies - which achieve (over a financial year) a turnover of more than €450 million and employ more than 1,000 employees (on average). With regard to non-EU companies, only those with a turnover of more than €450 million within the EU and either a subsidiary (large company) or a branch (generating more than €50 million in turnover) would be concerned by a report dealing with their sustainability issues in 2029 (for the 2028 financial year).

Retention of the principle of dual materiality

Maintaining the principle of dual materiality: this principle would remain enshrined in the text of the directive itself. It would continue to be applied in the ESRS standards currently being revised.

A "value chain cap" principle applied to contractual clauses

Reinforcement of the "value chain cap" principle: the Member States are asking that companies subject to the obligation to present a sustainability report should not be able - via contracts - to impose excessive reporting requirements on companies in their value chain employing a maximum of 1,000 employees. They may only be asked to provide the information listed in the voluntary reporting standard. If a contractual clause does not comply with this principle, it will not be applicable to co-contractors and they should be informed of their right to decline a request for information that does not comply.

Lighter ESRS standards

Lighter ESRS: sustainability reporting standards should not contain data points - to be acquired from companies in the value chain with fewer than 1,000 employees - that go beyond those mentioned in the voluntary sustainability reporting standard.

A voluntary reporting standard based on the VSME standard

The introduction of a dedicated voluntary reporting standard: this voluntary standard would be based on the VSME standard. It could be used by companies with a maximum of 1,000 employees. This standard would be officially adopted within 4 months of the publication of the omnibus text.

Eventual sustainability reporting in Xbrl format

Reporting in Xbrl format: the production of a report in Xbrl format would only be imposed following clarification of the matter by a legal text (a delegated act).

Future changes to the scope of the sustainability report

Future review of the scope of the text: a clause provides for a possible review of the omnibus text in the future. If this is the case, the European Commission should analyse in advance the benefits of introducing a simplified sustainability reporting procedure.

Next steps in the negotiation of the omnibus text

The Council of the EU has decided on its negotiating position. The MEPs, who co-legislate on this text, are currently working on their position. This will not be finalised until October. In the autumn, then, representatives of the EU Member States and MEPs will meet in trialogue to negotiate point by point the adjustments to be made to the sustainability report. So the legislative debate is not over.