The pressure on EU-based businesses to address climate change may soon be eased as the European Commission looks to introduce a raft of ‘simplification’ measures that will reshape sustainability reporting requirements.

The EU’s ‘Omnibus Simplification’ package will be rolled out this month, aimed at streamlining a series of newly introduced initiatives under the EU Green Deal, including the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD).

The initiative is part of the EU’s Competitiveness Compass, which promises to reduce regulatory red tape and “fix our weaknesses to regain competitiveness”, according to European Commission president Ursula von der Leyen.

After increasing pressure from a number of EU member states, reforms to the CSRD and CSDDD are expected to re-examine reporting criteria for small and mid-sized companies. Authorities in France and Germany are pushing to both ease reporting requirements and extend the compliance deadline by two years for some businesses. They are also calling for the removal of sector-specific European Sustainability Reporting Standards (ESRS), which are due to be introduced in 2026.

Under CSRD’s existing scope, companies must disclose some 1,000 data points as part of annual reporting that details the environmental impact of their activities, including Scope 3.6 emissions generated from business travel. Listed companies in the EU with more than 500 employees and a net turnover of more than €50 million will need to comply this year, while SMEs in the region are due to report from 2027 and some non-EU based businesses with interests in the region will also need to begin reporting by 2029.

The CSDDD, meanwhile, aims to establish a standardised due diligence duty for larger companies and will be rolled out in phases from 2027.

But this may all soon change with the commission, last week, stating its omnibus proposal will cut the administrative burden for large companies “by at least 25 per cent” and “by at least 35 per cent” for SMEs.

What does this mean for sustainability reporting standards across the EU and, critically, efforts to reduce the climate impact of business travel?

German business travel association VDR said the progress and implementation of sustainability reporting regulation in Germany remains “uncertain” following the collapse of the coalition government last year.

Despite urging the next government to reduce the burden of bureaucracy, the association condemned proposals to delay the CSRD, stating that it “calls into question Germany’s credibility in the European dialogue and, on the other hand, leads to uncertainty among companies”.

“The majority of companies that would be required to report from January 2025 have started implementing the requirements and are already well prepared… However, the lack of legal regulation hinders the desired harmonisation and burdens companies operating in EU markets with additional complexity,” VDR said in a statement.

France is one of 18 EU members states that have already enacted the CSRD into national law. The country’s travel management association AFTM said it supports French authorities’ push for simplification, but only if it “does not equate to a reduction in corporate responsibility”.

The association expects the proposed changes to reporting regulation will have a “limited” impact on large French corporations, with many having already published emission reduction targets, including for Scope 1, 2, and 3 emissions. However it raised concerns about standardisation and comparability in sustainability data if SMEs face fewer reporting constraints.

“The reduction of administrative burdens may allow companies to allocate more resources to implementing effective sustainability strategies rather than focusing excessively on compliance requirements,” the association said in a statement. “At the same time, ensuring that reporting remains robust is essential to maintaining corporate accountability and aligning with global sustainability goals.”

According to AFTM, French corporates continue to view sustainability as a competitive advantage and “a key differentiator in corporate travel policies”.

European business travel association network BT4Europe also welcomed the simplification initiative. In a statement provided to BTN Europe the organisation said it “strongly supports” the move and, rather than commenting on proposed changes to sustainability reporting regulation, said it is focused on “hands-on proposals” to simplify cross-border and multimodal travel.

During the omnibus consultation process, the association submitted a series of recommendations to the commission, including a request for the exemption of business travellers from the EU’s A1 form, greater investment in online rail booking capabilities and “harmonising” regulation to ease cross-border car rental services.

The Global Business Travel Association (GBTA) has also been paying close attention to the proposed reforms, and warned that re-opening CSRD and CSDDD legislation could lead to uncertainty and “send mixed signals on the EU’s level of social and environmental standards”.

GBTA SVP of advocacy and sustainability, Delphine Millot, said: “We trust the European Commission to take a balanced approach that supports competitiveness and streamlines reporting requirements while providing incentives and certainty for businesses that have already invested in emissions tracking, target setting and disclosure.

“However, we would encourage the European Institutions to work together on this project in order to craft a regulatory framework that Europeans can rely on for many years to come, so that reporting rules can be fully onboarded within European companies, both logistically and culturally.”

She added: “One risk we see is that policymakers may be tempted to unnecessarily amend the commission’s proposal as it goes through co-decision and final adoption over the next few months… There is a real risk to see this ‘simplification’ effort turn into ‘deregulation’. This would have unintended consequences for business, not to mention for people and the planet.”

The EU’s Omnibus Simplification package is expected to be introduced on 26 February and, along with changes to the CSRD and CSDDD, will also address the EU taxonomy for sustainable activities.