CSRD Update: Omnibus Progressing Swiftly
The European Parliament has adopted, at first reading, the Commission’s proposal for a two-year postponement of incoming reporting requirements under the Corporate Sustainability Reporting Directive (2022/2464/EU, “CSRD”).1
This follows on from the Parliament’s decision to fast-track its consideration of that proposal. This postponement is designed to give time to the co-legislators to agree the Commission’s substantive proposals to amend the scope and simplify the reporting requirements under CSRD.
The next step will be for the Council of the European Union to consider the proposal and, if no amendments are suggested, to adopt it as a Directive. The resolution from the Parliament notes that, “…[i]n view of the urgency of the matter and to provide legal certainty as soon as possible…” exceptions to usual approval time-lines are considered appropriate.
The Council is scheduled to meet on 14 April 2025 and it is widely expected that it will formally approve the proposal, having previously endorsed it without amendment on 26 March 2025. As currently drafted, the proposed Directive will enter into force on the day following its publication in the Official Journal of the European Union.
One of the key benefits of the accelerated timetable at an EU level, is that it will give Member States (including Ireland) plenty of time to transpose the Directive into national law. That certainty will be very welcome by Irish and EU businesses, especially those that that would otherwise be in scope of CSRD sustainability reporting requirements at the end of this year.
Ireland’s Minister for Enterprise, Tourism and Employment (Peter Burke) has indicated in a recent press release that he will be “…focussed on quickly implementing the EU’s ‘Stop the Clock’ proposal…”.
Encouragingly, that press release also states: “Minister Burke will shortly be amending the existing Irish legislation governing CSRD to further clarify and reduce the scope of companies covered…”.
This may be in response to a number of concerns raised by McCann FitzGerald LLP (along with other leading law firms and other bodies) in relation to a potential lack of alignment between the scope of CSRD and the Irish transposition measures, particularly with respect to the potential extension of scope to companies, including those in the financial services sector, that did not otherwise meet the relevant size thresholds applicable to large companies.
For a more detailed discussion on the proposed Omnibus Package, including the proposed Omnibus II Directive which would materially alter the scope of CSRD (amongst other matters), please see our earlier briefing here.
If you have any questions about any of the developments mentioned in this briefing, please get in touch with one of the below key contacts, or your usual contact at McCann FitzGerald LLP.
- The Commission’s proposal also provides for postponement by one year of the date from which Member States are to apply the Corporate Sustainability Due Diligence Directive (2024/1760/EU, “CSDDD”), for the first set of companies that fall within the scope of CSDDD.
This document has been prepared by McCann FitzGerald LLP for general guidance only and should not be regarded as a substitute for professional advice. Such advice should always be taken before acting on any of the matters discussed.
Select how you would like to share using the options below