The proposals set out in the draft Omnibus Directive will reduce complexity of EU requirements for all businesses, particularly SMEs and small mid-caps, focusing the regulatory framework on the largest companies while still enabling companies to access sustainable finance for their clean transition.

The change will remove around 80% of companies from the scope of the Corporate Sustainability Reporting Directive (CSRD), focusing sustainability reporting obligations on the largest companies which have the biggest impacts on people and the environment.