mailingLeitner Slovakia – Approved updates from the Omnibus package

Dear Clients and Partners,

In this edition, we would like to update you on recent sustainability-related developments at the level of the European Union. On April 16^th, 2025, the so-called “Stop the Clock” Directive – the first part of the proposed “Omnibus” package announced in February 2025 – was published in the Official Journal of the European Commission.

We are here for you,

Anna Fábryová & Peter Szabó

What is the Omnibus Package?

The EU aims to align its high sustainability ambitions with the need to protect and strengthen the competitiveness of European businesses. The Omnibus package introduces several proposed amendments to the Corporate Sustainability Reporting Directive (CSRD), the EU Taxonomy Regulation, and the Corporate Sustainability Due Diligence Directive (CSDDD).

What are the key proposed changes to the CSRD within the Omnibus package?

The proposed simplifications primarily target small and medium-sized enterprises (SMEs). In addition to raising the reporting thresholds, the volume of information that larger companies may require from SMEs within their supply chains would also be limited.

No changes are proposed for publicly listed companies with more than 500 employees – they will still be required to prepare sustainability reports under the CSRD. Large private companies (with a revenue of EUR 50 million and assets of EUR 25 million) employing fewer than 1,000 people are expected to be fully exempt from CSRD reporting requirements. For companies with over 1,000 employees, the obligation would be postponed by two years – to 2027. For non-EU companies, it is proposed to raise the threshold from EUR 150 million in turnover to EUR 450 million. The removal of sector-specific standards, which were originally under development, is also being considered.

The European Commission estimates that these changes would reduce the number of companies within the scope of the CSRD by 80%. The Omnibus package also includes a simplification of the European Sustainability Reporting Standards (ESRS), aiming to limit the scope of required disclosures and reduce the volume of qualitative data. However, the audit requirement, which enhances the credibility and reliability of non-financial reporting, remains unchanged.

What changes are expected in the EU Taxonomy?

The changes would also involve raising the thresholds for EU Taxonomy reporting. Currently, all companies under the CSRD are required to report. Under the new proposal, EU Taxonomy reporting would only be mandatory for companies with more than 1,000 employees and an annual turnover exceeding EUR 450 million. Companies with more than 1,000 employees but turnover below this threshold would only need to disclose the existence of sustainable revenues. Voluntary reporting will remain possible – and is encouraged.

What is the status of the Corporate Sustainability Due Diligence Directive (CSDDD)?

A one-year deferral is proposed for the first wave of companies affected by the CSDDD – until July 2028. The timeline for the second wave remains unchanged. The proposed changes significantly ease the due diligence process requirements.

Approval of the deferral – “Stop the Clock” Directive

As mentioned above, the first part of the Omnibus package has been approved. On April 17^th, 2025, the “Stop the Clock” Directive came into effect, postponing key deadlines:

• Companies previously required to publish a CSRD report for 2025 (the second wave) now have a two-year deferral. Their first report will be due in 2028 for the 2027 financial year.
• The transposition deadline and first phase of implementation of the CSDDD – covering the largest companies – has also been postponed by one year.

The transposition of this directive into Slovak legislation (Accounting Act) is set for December 31^st, 2025. According to the Ministry of Finance, early adoption of the directive is a priority for Slovakia.

The importance of continuing sustainability efforts

Although the scope of mandatory non-financial reporting is being reduced, sustainability is not disappearing from the business agenda. On the contrary, it is becoming a competitive advantage. Voluntary reporting, using the simplified standards for SMEs (VSME) or the EU Taxonomy framework, provides valuable tools for building trust with customers, partners, and investors – and can open the door to new opportunities in sustainable finance.

Companies that have already invested time and resources into CSRD preparations do not need to start from scratch – they can build on their existing analyses and shift toward meaningful voluntary reporting. Right now is a great opportunity to show that ESG is an integral part of your strategy – not out of obligation, but because it can be meaningful and valuable.

Your partner throughout the ESG journey

We continue to closely monitor developments in the sustainability landscape and are ready to support you throughout your ESG journey – from setting up internal mechanisms and team training to preparing or assuring your sustainability reports. We can help you navigate legal requirements, find effective solutions, and unlock the full potential of voluntary reporting. We would be happy to discuss how to structure the process so that you can manage it either independently – or with our assistance.