CSRD Reporting Postponed to 2028: How to Use the Extra Time for Competitive Advantage
The recent Omnibus proposal by the European Commission has stirred debate across the sustainability landscape. But here’s why this delay is actually a golden opportunity for forward-thinking companies.
In February 2025, the European Commission released its Omnibus legislative package, proposing key adjustments to the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD), and the EU Taxonomy Regulation. While some have viewed the delay in reporting deadlines and scope reduction as a step backward, sustainability leaders know better:
This is a chance to build smarter, more resilient, and impactful circular economy strategies.
What’s Changing with the Omnibus Package?
Before diving into strategy, let’s quickly highlight the most important changes introduced:
Key CSRD Updates:
CSRD stands for Corporate Sustainability Reporting Directive. It’s a regulation introduced by the European Union to improve and standardize how companies report on sustainability and environmental, social, and governance (ESG) matters.
- Reporting deadlines extended: Companies previously scheduled to report in 2026–2027 now have until 2028.
- Scope narrowed: Now only large businesses with >1,000 employees and high turnover/balance sheet are required to report.
- No SME obligation: Smaller supply chain partners are no longer required to provide sustainability data.
- Sector-specific standards eliminated: All companies will follow sector-agnostic ESRS.
CSDDD & Taxonomy Highlights:
The Corporate Sustainability Due Diligence Directive (CSDDD) is an EU regulation requiring large companies to identify, prevent, and mitigate adverse human rights and environmental impacts in their operations and supply chains.
- Due diligence limited to direct partners (Tier 1): Companies are now only required to assess and manage ESG risks in their immediate suppliers, reducing the complexity of deep supply chain mapping.
- Civil liability removed: Firms are no longer subject to direct legal liability for due diligence failures; instead, national governments will be responsible for enforcement.
- Transition plan still mandatory, but implementation requirements have been softened, giving companies more flexibility in how they operationalize sustainability goals.
- Taxonomy reporting scaled back: Remains mandatory only for the largest firms; optional for others, especially those not directly subject to the CSRD.optional for others.
Why This Is an Opportunity – Not a Delay
It’s tempting to see this as a loosening of the EU’s sustainability grip, but businesses ready to lead the low-carbon, circular transition know this is their head start. Here’s why:
1. Time to Build Robust Circular Economy Strategies
Many companies rushed into CSRD compliance without truly embedding sustainability into core operations. The Omnibus delay gives sustainability teams time to:
- Design long-term, scalable circular strategies
- Align internal stakeholders, budgets, and governance structures
- Integrate climate and circularity goals holistically
2. Stronger Data Systems for Smarter Decisions
CSRD reporting demands granular, reliable data — and building that takes time. This delay lets businesses:
- Invest in digital infrastructure for ESG data
- Set up KPI baselines aligned with material topics
- Reduce future audit risks through standardized processes
3. Better Supplier Engagement and Innovation
With SMEs off the hook for CSRD compliance, value chain data becomes trickier — but not impossible. Leading companies will:
- Embed circular criteria into procurement policies
- Use sector averages, third-party certifications, or tech tools to fill data gaps
- Co-develop sustainable practices with suppliers instead of demanding compliance
Future-Proof Your Sustainability Strategy Now
Instead of rushing to meet ticking deadlines, smart companies are turning this delay into a strategic investment period.
The payoff? Compliance becomes a source of innovation and competitive advantage.
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What to do next
To leverage the Omnibus opportunity:
- Audit your current ESG data and strategy gaps
- Engage internal teams early and often
- Set clear 2025–2027 milestones to stay on track for 2028
- Partner with experts who can guide you through circular strategy, reporting, and innovation
Frequently Asked Questions
The Omnibus legislation aims to streamline and adjust several EU sustainability regulations—most notably the CSRD, CSDDD, and EU Taxonomy. The purpose is to reduce complexity, ease the compliance burden for companies, and create more realistic timelines for reporting and due diligence.
Key changes include:
– Postponement of CSRD deadlines for many companies until 2028
– Higher thresholds for companies in scope (>1,000 employees)
– Removal of sector-specific reporting standards (ESRS)
– Simplified ‘Do No Significant Harm’ (DNSH) criteria
– Assurance guidelines replacing reasonable assurance requirements
As of early 2025:
– A four-week consultation period is underway
– EU Parliament and Council will negotiate in the “Trilogue” phase
– Once adopted, Member States have 12 months to implement the changes into national law Final adoption is expected by the end of 2025, with full application starting from – 2026–2028 depending on company scope.
INDEED Innovation is a trusted partner for companies across Europe navigating the evolving landscape of sustainability regulations.
We offer full-scope support—from CSRD compliance and circular product design to business model innovation and stakeholder engagement. Our services are tailored to help you:
– Develop a future-proof circular strategy
– Build your data and reporting infrastructure
– Align your team with Omnibus and CSRD requirements
– Activate high-impact solutions across your value chain
Explore how we can help → See our services
Book a strategy call with our team today and start building your circular transformation roadmap.
