Minister David Clarinval welcomes the European Parliament's vote on the provisional agreement on the Omnibus package, which aims to review and simplify the European sustainability rules applicable to European companies, notably the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CS3D / CSDDD). This initiative aims to streamline reporting and due diligence obligations, without abandoning the European Union's climate and social ambitions. By reducing excessive administrative burdens, targeting the companies concerned and giving economic players the time and resources to adapt, European industrial competitiveness is preserved and high standards of responsibility are maintained.
The CSRD and CS3D were among the simplification priorities, following the “reality checks” carried out by the European Commission and the recommendations of the Draghi report, which underlines the need to reduce the complexity and cost of reporting, particularly in light of international competition, notably from the United States and China.
The first obligations implemented in 2024 by the largest European companies revealed a significant administrative and financial burden, making it difficult to envisage extending these requirements to medium-sized companies. In Belgium, this finding was widely shared by economic players, including the Federation of Belgian Enterprises. The European Commission itself acknowledged that the Union's ability to defend its values also depends on the competitiveness and resilience of its economy.
David Clarinval, Minister of the Economy: “I fully welcome the Omnibus initiative. The agreement reached this week makes it possible to simplify regulatory obligations, adjust application thresholds to focus requirements on the largest economic players, and give companies time to organise themselves, without abandoning European ambition. Let's avoid pitting the economy against the climate. The green transition will not happen without businesses: it is thanks to them that we will be able to improve the climate situation in our country and around the world. To achieve this, we must support businesses rather than penalise them with standards that are sometimes unattainable. We are working hand in hand with our businesses to ensure that this ecological transition takes place in a realistic, sustainable and competitive manner.
It is a wise and balanced decision for the competitiveness of our economy and for sustainability.”
A targeted and proportionate simplification
The final agreement confirms a reduction in scope of around 80%, notably excluding companies with up to 1,000 employees and listed SMEs. Other companies will be able to use a voluntary sustainability reporting standard better suited to their economic reality. This harmonised voluntary sustainability reporting will be a very useful strategic tool for businesses.
The CS3D establishes a legal due diligence obligation for large companies to prevent, mitigate and remedy negative impacts on human rights and the environment throughout their chains of activities.
The European agreement significantly raises the application threshold to 5,000 employees and €1.5 billion in annual net turnover, including for companies not established in the European Union but active on the European market, in order to guarantee a genuine level playing field. The risk-based approach is maintained, and sanctions for non-compliance can reach up to 3% of global turnover. Unlike the previous version, the directive no longer provides for a harmonised European civil liability regime.
Next steps
The due diligence directive will need to be transposed into Belgian law by July 2028. The new sustainability reporting obligations (CSRD), meanwhile, will need to be transposed by January 2027.