The European Commission’s recent “Omnibus” legislative package, introduced in February 2025, marks a significant shift in the EU’s approach to sustainability reporting. Aimed at reducing administrative burdens and enhancing competitiveness, the package proposes substantial changes to the Corporate Sustainability Reporting Directive (CSRD), the EU Taxonomy Regulation, and the Corporate Sustainability Due Diligence Directive (CSDDD)
Key Changes in the Omnibus Package
1. Delayed Reporting Timelines
The “stop-the-clock” directive postpones the CSRD reporting requirements by two years for certain companies
- Large companies not yet reporting (Wave 2): First reports now due in 2028 for the 2027 financial year
- Listed SMEs and others (Wave 3): First reports now due in 2029 for the 2028 financial year.
This delay aims to provide companies with additional time to prepare for compliance.
2. Narrowed Scope of CSRD
The proposal significantly reduces the number of companies required to report under the CSRD
- Employee threshold: Increased from 250 to 1,000 employee
- Financial criteria: Companies must also meet either a turnover above €50 million or a balance sheet total above €25 million
This change is expected to exempt approximately 80% of companies previously in scope
3. Simplification of Reporting Standards
The European Sustainability Reporting Standards (ESRS) will undergo revisions to:
- Reduce the number of data points.
- Clarify ambiguous provisions.
- Improve consistency with other legislation.
Additionally, the requirement for sector-specific standards and the potential move to “reasonable” assurance levels have been removed.
4. Voluntary Reporting for SMEs
For companies no longer in scope, the Commission plans to introduce a voluntary reporting standard based on the SME standard developed by EFRAG. This aims to limit the information that larger companies can request from smaller entities in their value chains.
Why Hotel Chains Should Start Preparing Now
Despite the proposed delays and scope reductions, it’s imperative for hotel chains to begin their sustainability reporting preparations:
Risk Management: Proactively identifying and addressing sustainability risks can prevent potential reputational and financial damages.
Market Expectations: Travelers, investors, and partners increasingly demand transparency in sustainability practices.
Operational Efficiency: Early adoption allows for the integration of sustainability metrics into existing systems, reducing future compliance costs.
Competitive Advantage: Demonstrating commitment to sustainability can differentiate your brand in a crowded market.