CSRD Delays Approved - But 90% of Businesses Say They’ll Still Report

The Simplification Omnibus package was introduced by the European Commission in February 2025 to simplify sustainability legislation and ease the regulatory burden on businesses.

Still, recent industry data shows that 90% of businesses plan to continue ESG reporting — even without a legal requirement.

What’s changed under the new directive?

These approvals do not mean the Simplification Package has been passed. These updates focus instead on the timeline of reporting deadlines rather than the reporting requirements themselves.

With the vote passed:‍

• ‍CSRD requirements are delayed by two years for large companies that haven’t started reporting, and for listed SMEs. As a reminder, the timelines are as follows:

• CSDDD requirements are delayed by one year for the largest companies.

This is part of the EU’s broader effort to reduce regulatory pressure and give businesses — especially smaller ones — more time to prepare.

Learn more about the proposed EU Omnibus package here.

What happens next?

Interinstitutional negotiations between the European Parliament and the Council of the EU will begin to finalise the legal text.

The European Commission will push on with other elements of the Simplification Omnibus package, tasking the European Financial Reporting Advisory Group (EFRAG) with simplifying the European Sustainability Reporting Standards (ESRS). Simplifications will likely mean fewer mandatory data points and technical guidance to reduce the burden for reporting companies. 

Key milestones to watch:

• 15 April 2025: EFRAG will confirm its internal timeline for revising the standards
  
• 31 October 2025: EFRAG will submit its technical advice to the Commission

The revised ESRS are expected to be applied to the 2027 financial year for reporting beginning in 2028.

How are businesses responding?

When the Omnibus proposal first emerged, many questioned whether companies would scale back their sustainability efforts — and whether deregulation might slow progress on climate action.

But the data tells a different story.

In a recent survey tied to the Omnibus announcement:

• 90% of businesses said they’ll continue ESG reporting, even without a legal requirement. Some companies who aren’t required to meet new CSRD requirements may shift to EFRAG’s Voluntary standard for non-listed micro-, small- and medium-sized undertakings (VSME).‍
• 85% said reporting remains important to their stakeholders.

This suggests that some companies believe sustainability will be a value driver within the business, encouraging continued focus on transparency and collaboration. The companies that prioritise transformative action in the face of uncertain regulations will be the leaders in sustainability.

Why Scope 3 still matters for food businesses

For most food businesses, Scope 3 emissions account for over 90% of their total footprint. Even with delays to formal reporting, this remains the biggest area of risk — and opportunity.

Continuing to report voluntarily offers clear advantages:

1. Customers still expect it

Sustainability credentials are now a core part of procurement. 86% of businesses say green requirements appear in RFPs. Regular, accurate reporting helps meet these requests — and cuts down the admin behind them.

2. It drives better decisions

Reliable data helps teams identify hotspots, take action, and track impact. We helped Azzurri Group reduce their F&B emissions by nearly 7% in one year by increasing primary data collection. Read their latest sustainable dining report here.

3. It can boost profitability

Sustainable supply chains often bring operational benefits. A McKinsey study showed operating profit can increase by up to 60% through better supply chain management.

4. This is your window to prepare

With less pressure, there’s space to get it right. Now’s the time to build strong systems, engage suppliers, and test what works — without the stress of last-minute audits. 

A delay in deadlines — not a delay in action

The CSRD delay gives businesses more time, but the direction is clear. Companies that continue building now will be better prepared, more credible, and in a stronger position when requirements return.

Want to make the most of this window?

We help food businesses measure, reduce, and report their environmental impact with confidence.

Let’s talk.