European Commission Presents Omnibus I and II legislative packages
The proposals have generated a great deal of interest among companies. If the proposals are adopted, up to 80% of companies that were to be subject to sustainability reporting will be exempted from this obligation, while those companies that remain under the obligation will be given more time to comply.
Taxonomic reporting will remain an obligation for large companies only. The requirement to demonstrate sustainability due diligence in the supply chain is to be systematically targeted at direct business partners.
Moreover, it is proposed to exempt up to 90% of importers from CBAM - the carbon border offsetting mechanism.
While some fear that the proposed legislation will undermine the sustainability objectives themselves through oversimplification, others claim that it is a return to the original purpose of ESG and carbon footprint measuring as a management tool for analysing risks and opportunities.
It is important to remember that these are still only proposals that will have to be discussed by the European Parliament and the Council. In the end, the final form may differ from the proposals.
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