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Le European Commission’s Omnibus Package, introduced on February 26, 2025, is set to reshape sustainability regulations across Europe. While the package aims to streamline compliance, it also raises important questions for US companies operating in or exporting to the L'UE. For this reason, understanding these regulatory shifts is essential to staying compliant, maintaining competitive advantage, and reducing risk.
In this article, we break down the key changes and, at the same time, explain their potential impact on US businesses.
Key Changes in the Omnibus Package and Their Impact on US Companies
1. Corporate Sustainability Reporting Directive (CSRD)
What’s Changing?
First, reporting thresholds are increasing. From now on, companies must have over 1,000 employees or meet higher turnover requirements to be covered.
Second, compliance deadlines have been pushed back by two years for companies already within the directive’s scope.
Finally, supply chain reporting requirements have been simplified, so US firms will only need to report sustainability data from entities already covered by CSRD.
What It Means for US Companies
✅ US companies that no longer meet the thresholds will face lower compliance costs.
❗ However, this shift creates uncertainty. Should companies continue preparing for the previous rules, or should they shift focus to the new requirements?
❗ Additionally, reduced transparency could concern some investors, especially those prioritizing Performance ESG.
2. Corporate Sustainability Due Diligence Directive (CSDDD)
What’s Changing?
- Le compliance deadline has been postponed from 2027 to 2028.
- Due diligence obligations now only apply to direct suppliers, instead of including indirect ones.
- Reporting requirements have become less demanding, particularly for suppliers with fewer than 500 employees.
- Lastly, liability provisions have been softened. As a result, companies using third-party verification or industry certification could face lower legal risks.
What It Means for US Companies
✅ These adjustments lower due diligence costs and reduce liability in supplier relationships.
❗ However, they also weaken supply chain oversight, which could increase reputational risks.
❗ Moreover, enforcement will vary between EU member states. Therefore, some jurisdictions may still impose stricter rules than others.
3. EU Taxonomy Regulation
What’s Changing?
- Only companies with €450 million+ turnover must report.
- The number of required disclosures has dropped by 70%.
- In addition, companies may follow a phased reporting approach.
What It Means for US Companies
✅ Smaller US companies will benefit from lower reporting burdens.
✅ At the same time, companies gain more flexibility in how they meet sustainability targets.
❗ Yet, reduced reporting may trigger investor concerns, especially among those focused on sustainability transparency.
4. Carbon Border Adjustment Mechanism (CBAM)
What’s Changing?
- Companies importing less than 50 metric tons per year will be exempt.
- However, future expansions could broaden CBAM’s scope to additional sectors.
What It Means for US Companies
✅ Small-scale US exporters will benefit from these exemptions.
❗ Nevertheless, larger exporters must continue following CBAM compliance rules, ensuring carbon tariffs are calculated correctly.
❗ Furthermore, US businesses should closely monitor upcoming CBAM expansions, as new sectors could soon fall under its requirements.
Strategic Considerations for US Companies
Since the Omnibus Package brings both opportunities and risks, US companies must remain proactive. Below are some strategies that can help:
1. Stay Informed and Adapt Quickly
Monitor regular updates from EU regulatory bodies and industry groups. Additionally, keep track of ongoing negotiations in the European Parliament, because the final laws may differ from initial proposals.
2. Develop Proactive Compliance Strategies
Even if some obligations become voluntary, maintaining strong pratiques de durabilité still enhances reputation and investor confidence. Therefore, voluntarily aligning with CSRD et CSDDD could future-proof your sustainability reporting.
3. Strengthen Supply Chain Due Diligence
Focus your compliance efforts on direct suppliers, and at the same time, use data analytics et digital tools to improve risk assessments without inflating costs.
4. Monitor Enforcement Trends
Some EU member states may adopt stricter enforcement policies than others. As a result, identifying jurisdictions with more favorable rules could help optimize your compliance strategy.
Préparer l'avenir
Le EU Omnibus Package represents a significant regulatory shift for US companies. On the one hand, it reduces administrative burdens. On the other hand, it introduces uncertainty and new compliance risks.
Because of this, US businesses need a balanced approach. By combining regulatory vigilance with proactive sustainability measures, companies can remain competitive in the European market.
Key Takeaway
In summary, staying flexible, informed, and actively involved in policy discussions will allow US companies to turn compliance challenges into strategic opportunities.
Want to stay ahead of evolving global sustainability regulations? Join the USA Sustainability Practitioner Program to build your expertise and future-proof your business.
