WHAT IS CSDDD & CSRD?
The European Commission’ s proposed omnibus simplification package aims to reduce the regulatory burden on businesses, with significant implications for procurement. The changes would remove around 80 % of companies from the scope of the Corporate Sustainability Reporting Directive( CSRD) and delay reporting obligations. The EU Taxonomy would also be limited in scope, aligning with the Corporate Sustainability Due Diligence Directive( CSDDD).
If adopted as planned, these measures could generate savings of approximately € 6.3bn($ 6.6bn) and unlock € 50bn($ 52bn) in investment capacity. For procurement professionals, the impact will be substantial, affecting sustainability reporting, supply chain due diligence and emissions-related requirements under the Carbon Border Adjustment Mechanism( CBAM).
Regulatory adjustments and procurement implications. The omnibus proposal includes changes to several key regulations:
CSRD( Corporate Sustainability Reporting Directive) Currently, CSRD requires large companies to disclose detailed sustainability information. The proposed changes will remove most companies from its scope, reducing reporting obligations across supply chains.
CSDDD( Corporate Sustainability Due Diligence Directive) This regulation mandates large companies to assess and address human rights and environmental risks in their supply chains. The proposal simplifies due diligence requirements, potentially reducing the compliance burden on procurement teams.