European Sustainable Investment Forum warns European Commission Omnibus sustainability simplification package could weaken CSRD and CSDDD and cut reporting scope by over 80%

European Sustainable Investment Forum (Eurosif) warned that the European Commission’s first Omnibus sustainability simplification package would, if adopted as proposed, weaken EU sustainability disclosures and undermine legal certainty for investors and companies, affecting capital allocation for industrial decarbonisation and the EU’s competitiveness. The package proposes fundamental changes to the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD) and the delegated acts under the EU Taxonomy Regulation. Eurosif argued that reopening the CSRD for renegotiation would create uncertainty for firms that have already prepared sustainability reports or started implementation work, and could hinder out-of-scope companies’ ability to raise finance. It also highlighted that the proposal aims to reduce the number of in-scope companies by over 80%, limiting investor access to comparable and reliable sustainability data and weakening forward-looking risk assessments, with voluntary reporting unlikely to fill the resulting data gap. The proposals now move to negotiations in the European Parliament and the Council of the EU. Eurosif called on co-legislators to preserve the ambition and integrity of the EU sustainable finance framework while seeking simplification, and referenced a separate statement coordinated with IIGCC and PRI representing investors managing EUR 6.6 trillion.