Key Omnibus highlights from Julien Denormandie and David Carlin

A few days after the Omnibus announcements, you may be wondering: Now that the CSRD is set to be simplified, what should I do? Am I still affected? When will we know if these changes are applied? How should I proceed during this transition period?

In a LinkedIn webinar, Julien Denormandie (Chief Impact Officer at Sweep and former French government minister) and David Carlin (ESG regulatory expert) analyzed the proposed changes and their potential impact on businesses.

The CSRD is simplified… but key elements remain

If the proposed changes are accepted, the scope, timeline, and number of indicators required for reporting are likely to change.

However, Julien Denormandie emphasizes that core structural elements of the CSRD remain unchanged:

“The CSRD is here to stay, despite the reduced number of companies affected. The extraterritoriality of the CSRD remains—non-European companies will still be subject to these obligations, ensuring transparency throughout the value chain. The double materiality assessment is confirmed, meaning companies must continue reporting on both how sustainability issues affect their business and how their business impacts the environment and society. Data auditing is also maintained, though assurance will remain limited and not reach a ‘reasonable assurance’ level. In summary, while we are witnessing a step back in environmental ambition, the CSRD remains, with significant changes that businesses must integrate.”

CSDDD is weakened but still a step forward

Regarding the Corporate Sustainability Due Diligence Directive (CSDDD), David Carlin acknowledges that it has been significantly softened, as companies will now only be required to conduct due diligence on their direct suppliers. However, he stresses that despite this relaxation of its rules, the CSDDD is still a meaningful step forward:

“In some ways, this shortens the responsibility chain when it comes to reporting. But compared to current due diligence practices, it is still a major step forward.”

Don’t fall into inaction

It’s important to remember that the Omnibus is currently just a proposal: “The Omnibus must be approved by the European Parliament, the European Council, and then go through trilogue negotiations. The final text will likely not be adopted before the end of the year, or even early next year.” says Julien Denormandie

What does this mean for you?

• Uncertainty about timelines: Julien and David’s advice is clear—don’t wait and see. Keep up your sustainability efforts to stay prepared for any outcome.
• If you’re part of the first wave of companies affected by the CSRD in 2025, you will still have to report, even if you fall below the newly proposed threshold of 1,000 employees (ie. for you, the current threshold remains in effect).

Sustainability is Smart Business

Regardless of regulatory changes, having a strong sustainability strategy is becoming essential for remaining competitive and profitable. Julien Denormandie emphasizes:

“It’s crucial to take control of your sustainability data for several reasons. First, it’s likely the only way to prepare your business for future resource constraints, such as the decline of fossil-based materials, and start shifting toward available, and therefore more affordable, resources. Second, taking control of your sustainability data is a way to reduce risks, especially within your supply chain.”