The European Commission is proposing a far-reaching reform of sustainability reporting. The "Sustainability Omnibus Package" is intended to provide significant relief for companies – particularly for the real estate sector. Data requirements and reporting obligations will be significantly reduced. Sustainability remains a key factor for investors, occupiers, and policymakers. The international real estate services provider CBRE supports companies in understanding the regulatory changes and implementing them strategically. "Investors and occupiers should continue to apply the guiding principles of the Omnibus directives – transparency, accountability, and action – to their real estate activities, with the aim of creating value, mitigating risks, and accelerating the transition to a low-carbon economy," says Elvis Penjo, Head of ESG at CBRE Austria.

80 percent of companies are exempt from CSDR reporting requirements

The thresholds for companies subject to reporting requirements are rising significantly: In the future, the Corporate Sustainability Reporting Directive (CSRD) will only apply to companies with at least 1,000 employees and a turnover of over €50 million or a balance sheet total of over €25 million. This means that 80 percent of the companies previously affected will no longer be subject to the directive. Companies that continue to be subject to reporting requirements will also be given two years more time to implement the requirements. Despite these easing measures, double materiality—that is, the consideration of financial risks and opportunities as well as the ecological and social impacts of a company—remains a central principle of reporting.

The due diligence obligations under the Corporate Sustainability Due Diligence Directive (CSDDD) are also being relaxed. Companies will now only have to deal with direct business partners, rather than the entire value chain. Furthermore, the due diligence requirement will be reduced to a five-year cycle instead of the previous annual cycle. The requirement to terminate business relationships if no remedy is possible will also be removed. For the real estate industry in particular, this means that in the future, only direct partners such as construction companies or facility managers will need to be included in reporting – unless there is clear evidence of malpractice in the supply chain.

In addition, data collection and reporting will be simplified. The European Sustainability Reporting Standards (ESRS) will be revised and reduced by 70 percent of the previous data points. Sector-specific reporting requirements will be eliminated, and companies will no longer have to fear stricter audit obligations from external auditors. This is a significant relief, especially in the real estate industry, where collecting data on energy consumption, CO₂ emissions, and sustainable building materials is often challenging. Nevertheless, it remains essential to use existing sustainability data strategically to minimize risks and provide investors and tenants with transparent information.

Finally, the adjustment of the EU taxonomy provides further relief: Companies with a turnover of less than €450 million will no longer be required to report on the taxonomy, thus facilitating access to green financing. "With these changes, the EU is creating a more pragmatic framework for sustainability reporting, reducing bureaucratic hurdles, and enabling companies to focus more on the strategic aspects of their sustainability goals," Penjo analyzes. The European Parliament and the European Council must still approve the proposals. After adoption, EU member states have one year to transpose the new regulations into national law.