01 Sep 2025 3 min read
These are the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD), and the Taxonomy Regulations. The overall goal of the Omnibus is to reduce reporting burdens, particularly for smaller and mid-sized entities, and increase efficiency in sustainability reporting. This comes as a result of pressure to foster a growth environment in the EU.
In an effort to provide clarity to affected entities, the European Council (EC) has accelerated the approval process for the portion of the Omnibus impacting the reporting timeline - referred to as the ‘stop-the-clock' directive. On 3 April 2025, the European Parliament adopted the stop-the-clock portion of the proposal. To enter into force, the draft law now requires formal approval by the Council of the European Union, followed by transposition by each member state.
The stop-the-clock proposal will postpone:
It is important to note that the adopted CSRD postponement measure specifically does not mention Wave 1 or non-EU reporters, and as such, the relief does not currently extend to those entities. The CSDDD postponement does apply to Wave 1 reporters.
We are pleased that a clear timeline for CSRD and CSDDD application has been approved. With these changes in place, the European Parliament and EC will have time to agree on the additional substantial changes to the CSRD, Taxonomy, and CSDDD as set out in the Omnibus package. Additionally, this will provide entities with some relief as they wait to see whether the remainder of the Omnibus is passed.
Read the full European Parliament press release.
ESG benchmarking is developing into a valuable strategic tool for strategy, innovation and stakeholder trust in this playing field.
The Science Based Targets initiative (SBTi) has released the second version of its Corporate Net Zero Standard. This aims to provide a framework to assess, certify and track companies’ carbon reduction commitments and support science-based climate target setting.
On 8 May 2026, the ECB published its “Report on Good Practices for Climate and Nature-related Risk Stress Testing”
Europe has changed its standards, the expected data quality, traceability, the way risks are assessed and the requirements for supporting documentation. Although there is no law requiring companies from MERCOSUR countries to comply with European directives, these requirements are conveyed through European importers or customers.
The European Commission has published the draft of the updated, simplified ESRS. The new standards aim to significantly reduce the cost of preparing sustainability reporting.
We have released the first Grant Thornton International IFRS Sustainability Disclosure Standards – Example Sustainability-related Financial Disclosures.
Explore how mid‑market firms approach sustainability worldwide, why regional priorities diverge, and what this means for growth, efficiency and competitiveness.
EU Council approves final agreement on CSRD and CSDDD simplification.
European sustainability reporting requirements have changed significantly in 2025. We have summarised the key changes across CSRD, CSDDD, ESRS and EU Taxonomy.
The 2008 financial crisis prompted a review of regulations in the banking sector. As a result, new entities entered the market offering digital solutions that combine traditional services with opportunities inherent to the online financial market.
EU Council and EU Parliament reach an agreement on CSRD and CSDDD simplification.
