A document containing the European Commission’s ‘omnibus’ proposal for reducing sustainability requirements on EU businesses has been leaked to the media. Ropes & Gray has detailed the provisions contained in this leaked proposal.
According to the document, the proposal would narrow the scope of the CSRD to align with the CSDDD. This would see the threshold for in-scope companies raised to €450 million net turnover and 1,000 employees.
In addition, CSDDD compliance would be delayed by one year, whilst the Commission would commit to issuing implementation guidance by July 2026. Another change to the due diligence law under would see the requirements for companies to identify adverse impacts limited to their direct business partners.
The Commission is expected to announce its formal proposal on Wednesday (26 February).