March 14, 2025
On February 26th, the Omnibus proposals were shared with the European Commission to simplify the reporting requirements for the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Reporting and Due Diligence Directive (CSRDDD), the EU Taxonomy, and the Carbon Border Adjustment Mechanism (CBAM).
The proposals increase the thresholds for required reporting for Canadian firms with EU subsidiaries. Previously non-EU firms with over €150M net turnover and more than 250 employees in European were required to begin reporting in 2029 (for fiscal year 2028).
If the omnibus proposals are accepted, reporting will be limited to only non-EU firms with over €450M net turnover and over 250 employees at European subsidiaries. Additionally, reasonable assurance requirements have been removed for firms that meet the new reporting thresholds – only limited assurance will be required.
Canadian firms that are no longer in-scope for mandatory reporting are encouraged to use the Voluntary Reporting Standard for SMEs (VSME) published on December 17, 2024. KPMG, BDO and Cooley share helpful summaries on the proposed changes.