CSRD and Omnibus: Implications of Recent Changes on Corporate Disclosure

The European Commission’s overhaul of corporate sustainability reporting began in 2021 with the introduction of the Corporate Sustainability Reporting Directive (CSRD), replacing the older Non-Financial Reporting Directive and mandating detailed disclosures under the European Sustainability Reporting Standards (ESRS). These standards, rooted in a double materiality approach, required companies to assess and report their impacts on society and the environment as well as the financial risks and opportunities arising from sustainability issues.

However, in February 2025, the EU adopted the Omnibus legislative package, significantly revising the CSRD’s scope and timeline. The “Stop the Clock” Directive postponed reporting requirements for many companies by two years, while the Context Directive is set to refine further which entities must comply and how. The threshold for non-EU companies was raised, offering relief to many Swiss and mid-sized firms, though EU value chain transparency means indirect impacts remain widespread. In parallel, the European Financial Reporting Advisory Group (EFRAG) was tasked with streamlining the ESRS to reduce bureaucracy and align more closely with global standards like the ISSB. 

For Swiss businesses, early adoption and alignment with CSRD principles are strategic opportunities to enhance competitiveness, investor appeal, and operational resilience in a rapidly evolving regulatory landscape.

Leighton Barnish, Senior Director, Sustainability, shared key takeaways for Swiss companies with IR Club Switzerland: 

• Swiss companies with significant EU operations or turnover may be directly subject to CSRD reporting. In contrast, many others will face indirect impacts as EU clients require ESG data from their suppliers, even if those suppliers are not formally in scope. 
• The Omnibus Package raises the reporting threshold for non-EU companies (to over 1,000 employees and €450 million EU turnover), exempting many mid-sized Swiss firms. However, EU value chain transparency means Swiss businesses may still need to provide sustainability data to remain competitive.
• Early alignment with CSRD standards offers Swiss companies strategic advantages, including enhanced reputation, better access to ESG-focused investors, and improved risk management. Switzerland is moving to update its regulations to closely mirror evolving EU requirements.

Read the full article here.