BDO in Ukraine about the New Omnibus for CSRD: Is it Better to Defer?

21/ 07/ 2025

Listen to online Stop   The European Commission has recently published the first package of Omnibus proposals intended to improve and simplify the process of corporate sustainability reporting within the European Union (EU). But how might these changes affect Ukrainian businesses, particularly those that work or intend to work with European partners? What is an Omnibus?. Omnibus is a package of proposals designed to simplify sustainability reporting requirements, particularly for corporate reporting under the CSRD (Corporate Sustainability Reporting Directive). One of the main goals of the Omnibus is to reduce the administrative burden on businesses, especially the SMEs, by narrowing the reporting scope and simplifying the requirements. The package includes the following changes: Changes to the scope of the CSRD: The reporting approach is now more favourable to small entities, as most companies with a smaller number of employees or limited turnover will be exempt from mandatory reporting. A voluntary standard for the SMEs: The Omnibus proposal includes a new voluntary standard for the SMEs (Voluntary SME), which will enable small businesses to report sustainability information in a less burdensome way. Simplification of reporting requirements: The European Commission plans to reduce the number of data points in reports by removing the least significant elements, thereby reducing the reporting burden on companies. Changes in the timing and application of reporting: A two-year grace period has been introduced for many companies. This will prevent companies from spending time and money preparing reports only to lose their status again due to changes in thresholds. How does this relate to the CSRD?. The CSRD is the main EU directive governing sustainability reporting, and it requires large companies to be transparent about environmental, social and governance issues. However, the Omnibus makes significant changes to the CSRD, particularly with regard to: Changes to the requirements for large companies: According to the new amendments, the reporting will only apply to large companies with more than 1000 employees or with a turnover exceeding EUR 450 million. This significantly reduces the number of companies that have to comply with these requirements. Industry standards: The Omnibus cancels the mandatory sector-specific reporting standards that were previously required under the CSRD. Businesses can now focus on using the European Sustainability Reporting Standards (ESRS). Simplification for businesses. The main goal of the Omnibus is to reduce the administrative burden on businesses. By simplifying the requirements, companies will be able to focus on the key aspects of sustainability, rather than spending unnecessary time and resources on requests that are not material. In particular: The SMEs will be able to opt out of mandatory reporting and use voluntary standards. The value chain and reporting requirements for suppliers are reduced, which will put less pressure on suppliers that are not subject to the CSRD. Is it better to defer?. Although the new Omnibus provides some relief for businesses, Ukrainian companies that cooperate with European partners or plan to expand into European markets should still prepare for increasingly stringent sustainability requirements in the EU. Why should the collection of information be continued?. Despite the Omnibus providing some relief, companies in Ukraine should continue to collect information for sustainability reporting. There are several important reasons for this: International competitiveness: Companies working with European partners must meet their sustainability requirements. Without proper reporting, companies may lose their competitive edge in international markets. Changes in national legislation: As international standards become more influential, Ukrainian legislation may gradually incorporate sustainability requirements into national regulations, making reporting mandatory for most companies. Attracting investment: Compliance with sustainability requirements can be an important factor in attracting investment. Investors are increasingly focused on companies that demonstrate transparency regarding environmental issues, social standards and management practices. Therefore, although the new Omnibus provides some relief for the time being, Ukrainian companies should continue to prepare reports in order to be ready for future changes and ensure their competitiveness in international markets. Whether your company has already started its sustainability journey or is just planning to take its first steps, now is the time to formulate the right strategy. BDO in Ukraine helps companies to integrate responsible business principles. Contact us and we will help you navigate the requirements, set priorities, and find the best solution for your business.

The European Commission has recently published the first package of Omnibus proposals intended to improve and simplify the process of corporate sustainability reporting within the European Union (EU).

But how might these changes affect Ukrainian businesses, particularly those that work or intend to work with European partners?

What is an Omnibus?

Omnibus is a package of proposals designed to simplify sustainability reporting requirements, particularly for corporate reporting under the CSRD (Corporate Sustainability Reporting Directive). One of the main goals of the Omnibus is to reduce the administrative burden on businesses, especially the SMEs, by narrowing the reporting scope and simplifying the requirements.

The package includes the following changes:

1. Changes to the scope of the CSRD: The reporting approach is now more favourable to small entities, as most companies with a smaller number of employees or limited turnover will be exempt from mandatory reporting.
2. A voluntary standard for the SMEs: The Omnibus proposal includes a new voluntary standard for the SMEs (Voluntary SME), which will enable small businesses to report sustainability information in a less burdensome way.
3. Simplification of reporting requirements: The European Commission plans to reduce the number of data points in reports by removing the least significant elements, thereby reducing the reporting burden on companies.
4. Changes in the timing and application of reporting: A two-year grace period has been introduced for many companies. This will prevent companies from spending time and money preparing reports only to lose their status again due to changes in thresholds.

How does this relate to the CSRD?

The CSRD is the main EU directive governing sustainability reporting, and it requires large companies to be transparent about environmental, social and governance issues. However, the Omnibus makes significant changes to the CSRD, particularly with regard to:

1. Changes to the requirements for large companies: According to the new amendments, the reporting will only apply to large companies with more than 1000 employees or with a turnover exceeding EUR 450 million. This significantly reduces the number of companies that have to comply with these requirements.
2. Industry standards: The Omnibus cancels the mandatory sector-specific reporting standards that were previously required under the CSRD. Businesses can now focus on using the European Sustainability Reporting Standards (ESRS).

Simplification for businesses

The main goal of the Omnibus is to reduce the administrative burden on businesses. By simplifying the requirements, companies will be able to focus on the key aspects of sustainability, rather than spending unnecessary time and resources on requests that are not material.

In particular:

• The SMEs will be able to opt out of mandatory reporting and use voluntary standards.
• The value chain and reporting requirements for suppliers are reduced, which will put less pressure on suppliers that are not subject to the CSRD.

Is it better to defer?

Although the new Omnibus provides some relief for businesses, Ukrainian companies that cooperate with European partners or plan to expand into European markets should still prepare for increasingly stringent sustainability requirements in the EU.

Why should the collection of information be continued?

Despite the Omnibus providing some relief, companies in Ukraine should continue to collect information for sustainability reporting. There are several important reasons for this:

1. International competitiveness: Companies working with European partners must meet their sustainability requirements. Without proper reporting, companies may lose their competitive edge in international markets.
2. Changes in national legislation: As international standards become more influential, Ukrainian legislation may gradually incorporate sustainability requirements into national regulations, making reporting mandatory for most companies.
3. Attracting investment: Compliance with sustainability requirements can be an important factor in attracting investment. Investors are increasingly focused on companies that demonstrate transparency regarding environmental issues, social standards and management practices.

Therefore, although the new Omnibus provides some relief for the time being, Ukrainian companies should continue to prepare reports in order to be ready for future changes and ensure their competitiveness in international markets.

Whether your company has already started its sustainability journey or is just planning to take its first steps, now is the time to formulate the right strategy.

BDO in Ukraine helps companies to integrate responsible business principles. Contact us and we will help you navigate the requirements, set priorities, and find the best solution for your business.