The Omnibus Package: Simplified Reporting

At the end of February, the European Commission presented the first part of the Omnibus Package. The goal is to simplify sustainability reporting, particularly for small and medium-sized enterprises. It’s important to note that this is only a proposal from the Commission and has not yet been adopted. It must be reviewed and approved by the European Parliament and Council before it can take effect.
But what does this mean for the real estate sector?

Who needs to report?

The biggest change is that fewer companies will fall under the reporting requirements. According to the European Commission, these changes mean that about 80% of the companies originally covered by the CSRD will now fall outside the scope.

The EU now proposes:

• A unified threshold for all companies—no longer a distinction between listed and non-listed firms.
• Only companies with more than 1,000 employees, a turnover of €50 million, or a balance sheet total of €25 million will be required to report.
• A delay for many companies—those originally set to start in 2025 or 2026 will get an additional two years.

Simpler reporting requirements – less bureaucracy

CSRD reporting will be simplified:

• Less extensive reporting for everyone.
• Sector-specific standards will be removed—companies no longer need to navigate industry-specific demands.
• Fewer mandatory data points, so only the most relevant information must be reported.

For companies not covered by the CSRD, a voluntary sustainability reporting standard (VSME) is proposed. This would also cap how much sustainability data large companies can require from smaller suppliers.

What does this mean for the real estate industry?

Grønn Byggallianse points out that simpler reporting does not mean sustainability is becoming less important—quite the opposite.
Less time spent on bureaucracy and complex processes means more time for actual sustainability initiatives.

You don’t need to involve your entire organization, expensive consultants, or every stakeholder in your value chain to identify that energy, water, waste, and construction are essential sustainability topics in real estate.

For property companies that saw CSRD as a burdensome process, the changes mean that only the largest companies will be required to meet the most detailed requirements.
Companies that have already invested in reporting may need to adapt to new frameworks in a few years—but having a solid overview of material topics and potential risks is never a bad idea.

The Taxonomy – still important, but with more flexibility

The changes also apply to the EU Taxonomy, which is used to assess how sustainable investments are.

The Commission proposes:

• Only companies with 1,000+ employees and turnover over €450 million will need to report.
• Simplified reporting templates with 70% fewer data points.
• A materiality threshold: companies will be exempt from reporting taxonomy alignment for activities that are not financially material (i.e., less than 10% of turnover, CapEx, or assets).
• Voluntary partial reporting: companies can showcase their sustainability efforts even if they don’t fully meet all taxonomy criteria.

According to Grønn Byggallianse, this could make it easier for companies to access green financing, as banks and investors will be able to assess sustainability efforts more flexibly than before.

The road ahead – what should the industry do?

The Omnibus proposal brings significant simplifications, but also some uncertainty. If the EU adopts the changes quickly, many companies will see a reduced reporting burden.

For the real estate industry, this is a chance to spend less time on paperwork and more time on sustainability actions.
At the same time, it’s crucial to stay informed on how the regulations evolve—both in the EU and in Norway.

Sources:
🔗 BDO Norway – EU proposes significant relief in sustainability reporting
🔗 Grønn Byggallianse – Omnibus: Less paperwork, more sustainability
🔗 The Norwegian Institute of Public Accountants – EU Omnibus simplification package