The evolution of ESG regulation in the European Union: analysis of the Omnibus I simplification package

Abstract

In recent years, the European Union (EU) has made efforts to tighten its ESG requirements within the framework of the European Green Deal, moving gradually from general declared statements to the establishment of specific legal obligations for business. However, pressure from its own businesses has led the EU, regardless of its desire to remain a leader in the ESG sphere, to ease its requirements for companies in terms of Corporate Sustainability Reporting Directive (CSRD), Corporate Sustainability Due Diligence Directive (CSDDD) and Carbon Border Adjustment Mechanism (CBAM). The EU-agreed amendments to the legislation are known as Omnibus I. This article outlines the multi-stage approval process and analyses the agreed ESG regulatory changes.