What Should Food Businesses Make of the Proposed EU Simplification Omnibus Package?
The European Commission has unveiled the Simplification Omnibus package, aiming to ease reporting requirements by revising key regulations like the CSRD, CSDDD, EU Taxonomy, and CBAM. For food businesses already affected by these regulations, the possibility of changes may create uncertainty. But while regulations may shift, the need to measure, report, and reduce emissions remains.
The European Commission has unveiled the Simplification Omnibus package, aiming to ease reporting requirements by revising key regulations like the CSRD, CSDDD, EU Taxonomy, and CBAM.
For food businesses already affected by these regulations, the possibility of changes may create uncertainty.
But while regulations may shift, the need to measure, report, and reduce emissions remains.
Scaling back now could mean falling behind with suppliers, with consumers, and ultimately, on our global commitment to remaining within planetary boundaries.
Here’s what the Omnibus package could mean for sustainability reporting—and why staying on track with Scope 3 emissions is critical.
What are the proposed changes? And how might they impact sustainability reporting for food businesses?
Broadly, the proposed changes aim to increase the size threshold of companies required to report, reduce information sharing requirements in the supply chain, and delay reporting deadlines.
These changes are not yet in effect. The Omnibus package must undergo review and requires approval from both the European Parliament and the Council before implementation. This means further revisions or compromises are possible before final adoption.
Here’s an overview of the proposed changes that may impact food businesses:
CSRD:
- Fewer companies required to comply with CSRD rules. Around 80% of companies would no longer be required to comply with CSRD. The proposal would only require companies with greater than 1,000 employees and €50 million in turnover to comply (up from 250 employees and €40 million in turnover).
- Delay in CSRD reporting timelines. Companies currently required to report starting in 2026 or 2027 would have their deadlines pushed back by two years.
- Reduced data-sharing requirements for SMEs. Businesses within the scope of CSRD would be prohibited from requesting more information from out-of-scope companies than what is outlined in the voluntary standard for SMEs (VSMEs).
CSDDD:
- Higher company threshold: The directive would only apply to companies with more than 1,000 employees and €450 million in turnover (up from 500 employees and €150 million).
- Limited supply chain scope: Due diligence obligations would focus only on direct suppliers, simplifying the process of assessing entire supply chains. The frequency of periodic assessments and monitoring would be reduced from annually to every 5 years.
- Delayed implementation: The directive's enforcement would be postponed by one year, to take effect in mid-2028.
EU Taxonomy:
- Reduced reporting obligations: Only the largest companies would be subject to EU Taxonomy reporting obligations, proposing voluntary reporting for companies within the proposed CSRD scope.
- Extended phase-in period: Businesses would have more time to integrate taxonomy-aligned reporting into their financial disclosures.
- Streamlined classification system: The taxonomy’s criteria for economic activities would be simplified, making it easier for companies to assess and disclose sustainability alignment.
CBAM:
- Small importers exempted: Importers responsible for less than 50 metric tonnes of emissions per year would be exempt from CBAM obligations, removing about 182,000 companies from the scope of CBAM.
- Simplified reporting requirements: A simplification of calculation of emissions, authorisation of declarants, and reporting requirements would be introduced to reduce administrative costs.
Should food businesses cut back on measuring and reporting emissions?
No. The fact remains that our food systems must deliver significant carbon, land use, and water use reductions to maintain our planetary boundaries–and Scope 3 emissions continue to be the primary driver of emissions for food businesses.
While reduced reporting requirements and voluntary standards may tempt businesses to reduce resources spent on measuring and reporting emissions, remember:
1. Compliance risks still exist.
- Regulations still apply today – The Omnibus Package has not been adopted by the European Parliament and the changes do not apply to existing directives. In some countries, the directives have already been transposed into national law. Businesses must follow existing directives as they stand now.
- Year-on-year reporting matters – Regulations like CSRD require reporting on past financial years. Gaps in data today will create inefficiencies in future disclosures.
- Global standards still demand strong ESG data – Frameworks like ISSB and SEC rules continue to push for robust sustainability disclosures.
2. Sustainability is a business advantage.
- Customers, investors, and partners expect transparency – ESG remains a core focus. Scaling back efforts could damage trust and competitiveness.
- Retailers and foodservice operators require supplier data – More than a third of companies claim they are willing to stop working with suppliers who don’t meet sustainability criteria–and up to 60% would be willing to stop in three years.
3. The climate crisis won’t wait.
- Global warming has already surpassed 1.5°C and our planetary boundaries are at risk – The window for meaningful action is closing fast.
- Delays are no longer justifiable – The best time for action was yesterday. The next best time is now.
If passed, the Omnibus Package may ease administrative burdens. However, this should not lead companies to focus less on accurate measurements or transparency, as it could compromise reporting accuracy and significantly undermine sustainability progress.
Companies can meet reduced reporting requirements while still retaining accurate emissions measurement.
How Foodsteps can help your business measure, report and reduce impact at scale
Foodsteps remains committed to advancing emissions measurement and reduction in our food systems, simplifying efforts for both required and voluntary reporting.
Measure emissions with unparalleled precision – Gain the most accurate view of your value chain impact with country-specific emissions factors and advanced modelling. Our system efficiently processes millions of data points, ensuring precise, scalable assessments and making it easier for your teams to gain insights.
Streamline reporting and compliance – Reduce reporting burdens with high-quality emissions data that enhances your primary data. Automate Scope 3 assessments, stay aligned with evolving regulations, and free up valuable time for your team.
Drive decarbonisation with confidence – Develop targeted, data-driven decarbonisation strategies with support from Foodsteps’ in-house scientists and professional services team. Track year-over-year progress with consistent, high-quality metrics to drive meaningful impact.
Interested in learning more?
Discover how Compass Group achieved a -9.4% emissions reduction while growing by 20% with Foodsteps' data-driven approach.
