Here's why you should bet on transparency anyway
The European Commission wants to relax sustainability rules for companies. On Feb. 26, they presented a proposal - the so-called "Omnibus Proposal" - that would, among other things, ease the Corporate Sustainability Reporting Directive (CSRD). The new thresholds mean that fewer companies would be subject to mandatory reporting and small listed companies may even be exempt.
Good news? That depends on how you approach sustainability. At Team EIFFEL, of which ConQuaestor is a part, we choose to look forward, not backward. That's why we continue to report according to the current CSRD standard.
The concrete changes proposed
The relaxation of the CSRD Directive means fewer companies will be required to report sustainability information. Here are the main changes in the proposal:
- Higher threshold for reporting requirement: Only companies with more than 1,000 employees and a turnover of €50 million or a balance sheet total of €25 million must report as of January 1, 2028. This was initially already mandatory for companies with 250 employees and as of Jan. 1, 2026.
- Exemption for small listed companies: For them, the reporting requirement expires entirely.
- Restriction of inter-chain demand: Companies may not charge chain partners with less than 1,000 employees more than what is stated in the Voluntary Standards for SMEs (VSME).
- Less strict linkage to EU Taxonomy: Only companies with more than €450 million in sales still need to demonstrate how sustainable their operations are within this legislation.
- No industry-specific standards and no "reasonable assurance. Firms need not prepare for additional detailed reporting standards. The requirement is limited to a limited audit ("limited assurance").
Although this is still only a proposal - and it has yet to be decided by the European Parliament and the European Council - it is expected that there will be some relaxation.
Why it's smart to stay transparent though?
Sustainability reporting is not just about mandatory regulation. Companies that are proactive with ESG (Environment, Social and Governance) to work, build their future resilience. These are four important reasons not to wait and see, but rather to bet on reliable ESG data:
- Better risk management
Sustainability is not just a moral or reputational issue - it also has direct financial and operational impacts. Think of stricter legislation in the future, fluctuating energy prices and changing consumer expectations. A good ESG report helps companies better identify and manage these risks. - Increasing demand from customers and funders
Suppliers, customers and investors are increasingly focusing on sustainability. Companies that have their sustainability information in good order can respond more quickly to these demands and even benefit from competitive advantages. Think of more favorable financing terms and a strong position in government tenders. - Better position in tight labor market
Employees are attracted to companies that embed sustainability in their strategy. More and more professionals are not just looking for a job, but an employer with impact. An organization that transparently reports on ESG and truly contributes to a better world exudes forward-thinking and credibility. - Preventing greenwashing and stronger brand
Consumers and regulators demand substantiated sustainability claims. Without reliable, verified data, you run the risk of being accused of greenwashing. A strong sustainability report, supported by audit opinions, builds credibility and helps companies score higher in benchmarks and ratings.
Team EIFFEL reports on 2025 after all
Despite the possible relaxations, Team EIFFEL does choose to report on 2025 according to the current CSRD guideline. Why? Because we believe in transparency and impact. For us, ESG is more than an obligation: it is a way to create value - for our stakeholders and for society.
We are committed to reliable and robust sustainability information, so that we not only comply with future laws and regulations, but also truly steer towards sustainability.
Transparency pays off
Whether the Omnibus proposal passes is not yet certain. But one thing is clear: transparency pays. Companies that invest in ESG reporting now are putting themselves at a strategic advantage.
Wondering how your organization can prepare for this? ConQuaestor helps set up robust and future-proof sustainability reports. Please contact Marten van der Zee via marten.vanderzee@conquaestor.nl To spar about the possibilities.