INSIRE informs - ESG updates | December

What have been happening recently in sustainability management? A concise overview of the most important regulatory developments.

Omnibus I: CSRD & CSDD - political course shift

The EU Council and the EU Parliament have reached a preliminary agreement on a final compromise. The consolidated legal text is available; formal votes are still pending.

What has changed?

CSRD: major discrepancies

• The threshold remains at 1.000 employees instead of the 1.750 employees proposed in November, and a turnover of ≥ €450 million.
• The obligation to apply remains at 2027.

Review clause

A later expansion remains possible

CSDD: new scope

• New thresholds: ≥ 5.000 employees and ≥ €1,5 billion
• Adaptation of LKSG to CSDDD
• → Climate transition plans are cancelled
• → Focus on key risk hotspots instead of entire supply chains

Time shift

• Mandatory use now only from July 2029

➡️ Result: More legal certainty but a clear focus on administrative relief.

ESRS: EFRAG publishes simplified standards

EFRAG has presented revised ESRS - a central element of the Omnibus Initiative.
→ ~70% fewer data points (from 1.073 to approximately 320)
→ Stronger focus on essentiality & feasibility
→ New questions regarding comparability & testability
→ Furthermore, EFRAG has published its "ESRS Knowledge Hub" with the aim of collecting information clearly and centrally.

➡️ ESRS readiness remains relevant, but with an adjusted scope and priorities.

EUDR: Postponement & simplification decided

The EU Parliament and the Council of Ministers have agreed on relief for companies.

Our advice to you

Current developments make it clear: Even with adjusted reporting requirements, transparency and the ability to manage remain crucial and future-oriented. INSIRE supports your company in strategically developing and effectively aligning ESG strategies, processes, and data models.

Learn more about Sustainability ESG here.