Many companies across Europe have already taken significant steps to prepare for the CSRD, CSDDD, CBAM, and EU Taxonomy. Supplier data has been gathered, double materiality assessments are underway, and risk management processes have been set up. With deadlines approaching, these efforts reflect a serious commitment to the transformation that sustainable growth requires — ensuring transparency, strengthening supply chain resilience, and reducing risks. 

Then came the European Commission’s Omnibus Package proposal on sustainability regulations and on the simplifications of investments and a few weeks later the formal adoption of the “Stop-the-Clock” directive. Since then, one question has dominated conversations: 
Does this mean companies should slow down or even pause their efforts? 

This article will provide clarity. 
In short: while some timelines have shifted, the broader regulatory framework remains intact. Early movers have not wasted their time — they have laid the foundation for stronger processes, better data management, and greater resilience. 

Those who continue to invest in the capabilities needed for sustainable growth — such as transparent supply chains, reliable risk assessments, and robust reporting — will be best positioned to navigate uncertainty, meet stakeholder expectations, and seize competitive advantages. 

What Is the Omnibus Package?

The Omnibus Package, introduced by the European Commission on 26 February 2025, is part of a larger plan to simplify EU regulations and reduce administrative burdens. The goal: enable companies, especially small and mid-sized enterprises (SMEs), to focus on what truly drives impact — without getting lost in complexity. 

The package is divided into two parts: 

• Omnibus I focuses on adjusting corporate sustainability regulations, including the CSRD, CSDDD, EU Taxonomy, and CBAM. It includes proposals to streamline reporting obligations, adjust thresholds, and optimize the scope of these rules. 
• Omnibus II targets the simplification of EU investment programs like InvestEU, aiming to improve access to funding and reduce bureaucracy. 

What makes the Omnibus Package so important: It does not aim to renegotiate the underlying objectives of these laws, but rather to make their implementation more practical and less burdensome — without losing sight of Europe’s climate and social goals. 

What Has Been Decided: The Stop-the-Clock Mechanism

The Stop-the-Clock directive is the first piece of the Omnibus I Package to become law. It was formally adopted on 14 April 2025 and published in the Official Journal of the European Union on 16 April 2025. The directive postpones certain reporting obligations, giving companies more time to prepare.

Regulation	Original Timeline	New Timeline	What Changed
CSRD (large companies that are not subject to NFRD)	FY 2025 → publish in 2026	FY 2027 → publish in 2028	Two-year delay for large companies’ first report
CSRD (listed SMEs)	FY 2026 → publish in 2027	FY 2028 → publish in 2029	Two-year delay for listed SMEs’ first report
CSDDD (companies >5,000 employees + €1.5bn turnover)	Duties begin 26 July 2027	Duties begin 26 July 2028	One-year delay for the largest companies’ due diligence obligations (no delay for companies who were originally obligated to come into scope from 26 July 2028 or 26 July 2029)

This mechanism was designed to provide legal certainty and breathing room — particularly for companies that had flagged operational challenges in meeting the original deadlines.

What is Still a Proposal: The Rest of Omnibus I

The other proposals within Omnibus I remain under negotiation and have not yet been adopted. These include: 

CSRD Scope Adjustments 

• Proposal to raise the reporting threshold to 1,000 employees 
• Introduction of voluntary reporting standards for companies that are not in the scope of the CSRD which will be based on the Voluntary Sustainability Standards for SMEs (VSME) 

CSDDD Modifications 

• Potential for longer reassessment intervals (e.g., every five years instead of annually) 
• Reduced data request requirements toward SMEs in the supply chain 

EU Taxonomy and CBAM Simplification 

• 10% materiality threshold for Taxonomy alignment disclosures 
• Partial alignment reporting as a voluntary option 
• Simplified CBAM filings for smaller import volumes 

These changes could provide welcome relief — but until they pass the legislative process, the existing frameworks and obligations remain in place.

Early investments are not wasted

A key debate surrounding the Omnibus Package is the fear that existing sustainability efforts — especially investments made in preparation for CSRD, CSDDD, and Taxonomy — might be devalued or rendered unnecessary if the scope of these laws changes. 

This concern has been voiced by many businesses and industry groups across Europe. Their message: companies need regulatory certainty to maintain momentum and justify the significant investments already made. 

The European Commission has clearly stated that the Omnibus Package does not seek to renegotiate the core laws. Instead, the aim is to reduce unnecessary burdens while safeguarding the integrity and purpose of the original regulations. In particular, the planned revision of the ESRS through a delegated act is meant to ensure that existing preparation work remains compatible and valuable. 

What Businesses Should Do Now

Despite the extended timelines, companies should not put their compliance efforts on hold. The fundamentals of sustainable business remain unchanged — and those who continue on their path will avoid risks and stay competitive.

1. Stay the course on sustainable transformation 
Continue with risk mapping, supply chain transparency, and data-driven assessments. These capabilities are not only regulatory necessities — they also support long-term value creation, resilience, and trust. 

2. Maintain reporting readiness 
Until changes are fully adopted, the current reporting obligations apply. Pausing now could lead to costly catch-up phases, non-compliance risks, or missed stakeholder expectations. 

3. Monitor developments — but plan with stability 
Keep track of the Omnibus Package discussions, but build your compliance infrastructure based on what is currently law. Adjustments can be made — but starting from scratch later would be far more complex. 

4. Use transparency as a strategic lever 
Even where reporting is voluntary, robust sustainability disclosures can improve positioning with investors, customers, and partners. This is not only about compliance — it’s about credibility. 

Where Software Can Help

At osapiens, we support businesses in navigating this landscape: not only to meet compliance requirements, but to go beyond and unlock real business value. The osapiens HUB enables companies to minimize manual effort and uncertainty, providing a future-proof digital backbone for transparency, risk management, and operational efficiency — all to support sustainable growth. 

With the osapiens HUB, you can: 

• Proactively manage supply chain risks 
  Identify and reduce risks early through data-driven insights across your supplier network. 
• Ensure end-to-end transparency 
  Gain a seamless overview of business partners and products to meet both regulatory and market demands. 
• Streamline compliance processes 
  Automate data collection and reporting workflows — including for CSRD, CSDDD, EUDR, and other relevant regulations. 
• Optimize traceability 
  Achieve precise tracking and documentation, securing regulatory compliance while boosting operational competitiveness. 
• Boost operational efficiency 
  Digitize and automate processes to enable smarter decisions, backed by real-time analytics and reliable data. 

The Stop-the-Clock delay provides time — use it wisely. Prepare your organization not just for compliance, but for stronger, data-driven growth. 

Learn more about how osapiens HUB supports your sustainability journey.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Please consult legal professionals for specific guidance on your compliance obligations.