Following the EU's Omnibus I simplification package, signed into law in February 2026, the scope of the CSRD has been significantly revised. The directive now applies to companies that meet both of the following thresholds: more than 1,000 employees and more than €450 million in net annual turnover. This represents a considerable narrowing from the original scope, listed SMEs and smaller large companies that previously expected to fall under the directive no longer do so under the revised rules.

For those that are in scope, the reporting expectations remain substantial. Companies must provide comprehensive information on environmental, social, and governance (ESG) factors, including climate change, biodiversity, human rights, anti-corruption, and governance practices. The directive continues to emphasise double materiality, requiring companies to report on both financial materiality (how sustainability issues affect the business) and impact materiality (how business activities impact people and the environment). Reporting timelines have also shifted, with Wave 2 companies now required to submit their first report in 2028, covering financial year 2027.

As a sustainability manager, you play a crucial role in aligning your organisation's sustainability goals with its broader business strategy, ensuring compliance with environmental legislation, and engaging meaningfully with stakeholders.

Even with the revised scope, the CSRD significantly shapes how sustainability professionals can drive change within their organisations. It does so across three key areas:

1. Integration of Sustainability into Core Business Strategy

The CSRD requires sustainability goals to be embedded within your company's overall business strategy — not treated as a separate workstream. In practice, this means:

• Developing long-term decarbonisation pathways and conducting scenario analyses to understand and mitigate the impact of climate change on business operations.

• Setting measurable sustainability targets that align with the company's strategic objectives and tracking progress against them over time.

• Embedding sustainability considerations into decision-making at all levels of the organisation, fostering practices that support both sustainability and long-term profitability.

  
  

2. Enhanced Stakeholder Engagement and Transparency

The CSRD requires companies to produce comprehensive, transparent sustainability reports that are accessible and meaningful to a wide range of stakeholders. This involves:

• Ensuring all ESG metrics are reported thoroughly, accurately, and in a way that can be independently verified.

• Proactively engaging with investors, customers, employees, and regulators to understand their concerns, build trust, and foster collaboration on sustainability issues.

• Using stakeholder feedback as an ongoing input to improve sustainability practices, keeping your organisation responsive to evolving expectations and emerging challenges.

3. Supply Chain Reporting and Due Diligence

The CSRD places significant emphasis on managing and reporting sustainability impacts across the entire supply chain. Key responsibilities include:

• Assessing the sustainability practices of suppliers and partners to ensure they meet your company's standards, and using that assessment to identify and mitigate risks.

• Implementing robust due diligence processes — including regular audits and assessments — to maintain compliance with sustainability standards throughout the supply chain.

• Collaborating with suppliers to improve overall sustainability performance, contributing to broader environmental and social goals beyond your own operations.

It is worth noting that under the Omnibus I reforms, suppliers with fewer than 1,000 employees now have the right to decline information requests that go beyond voluntary reporting standards. This means large companies in scope will need to be thoughtful about how they engage their supply base, and invest in tools that make data collection straightforward and proportionate for smaller partners.

How Simvia Can Help

Simvia can be your key partner in meeting CSRD requirements. Our comprehensive approach is designed to help you achieve compliance efficiently, without placing unnecessary burden on your team or your suppliers. With Simvia, you can deliver detailed ESG reporting aligned with both financial and impact materiality criteria, strengthen transparency and stakeholder trust, and ensure your business remains fully aligned with European legislative requirements as they continue to evolve.