The Association of Chartered Certified Accountants (ACCA) has highlighted the necessity for careful evaluation of the European Union's (EU) ‘Omnibus’ directive.
Announced in February 2025, the directive proposes changes to the European Green Deal, aiming to reduce the number of companies required to publish sustainability details and delay implementation by a year.
The proposals also aim to decrease the number of companies needing to audit their supply chains and limit information required from small and medium sized enterprises (SMEs).
As a result, around 80% of businesses will no longer fall under the Corporate Sustainability Reporting Directive (CSRD).
Instead, compliance requirements will primarily affect the largest corporations, given their significant social and environmental impact.
ACCA said that it supports the directive's intent to save costs, reduce burdens on SME's, and enhance competitiveness.
However, Mike Suffield, ACCA’s policy and insights director, stressed the need for clarity and consistency.
He said: “While we welcome the intent of the directive, businesses need consistency, clarity, and certainty; the Omnibus Directive needs careful consideration to ensure that it delivers on these requirements, while acknowledging the need to drive climate action.”
The global accountancy body added that it has supported robust sustainability reporting frameworks and voluntary disclosures globally.
It is assisting accountants and businesses with understanding and complying with the CSRD.
ACCA also underscored the importance of aligning European sustainability reporting with IFRS Sustainability Disclosure Standards to prevent regulatory divergence and minimise global market friction.
Suffield added that: “ACCA will be analysing the Omnibus Directive in greater detail to fully understand the impact on our global membership and our partners. We stand ready to assist the EU in their development and implementation of proposals, and to ensure globally consistent and clear sustainability reporting requirements for business.”
Meanwhile, the Institute of Chartered Accountants in England and Wales views the Omnibus proposals as a significant retreat from original sustainability reporting goals.
"EU’s Omnibus directive needs careful consideration, says ACCA " was originally created and published by The Accountant, a GlobalData owned brand.
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