Here’s a recent Cooley Alert that some companies may be delighted—or at least relieved—to read: Impacts for US Companies of the Proposed EU Omnibus Package, from Cooley’s international ESG and sustainability advisory team. As you may know, the EU has adopted a plethora of legislation related to sustainability—the Corporate Sustainability Reporting Directive (CSRD), the EU Taxonomy Regulation, the Corporate Sustainability Due Diligence Directive (CSDDD) and the Carbon Border Adjustment Mechanism (CBAM), to name some—and many of them are applicable to US companies that meet the reporting threshold. Some US companies have already begun preparing for compliance. But, as discussed in the Alert, perhaps that won’t be necessary just yet.
As discussed in the Alert, in February, the European Commission proposed an “Omnibus package” designed to streamline these recently adopted EU sustainability laws. Although the package remains subject to change, if ultimately adopted, it could have a significant impact on the EU legal compliance obligations for US companies within the scope of these laws. In fact, some of the provisions of the Omnibus package might well put them beyond the scope of these laws. For example, one component of the proposal is an increase in the reporting threshold for the CSRD to more closely align with the CSDDD, possibly putting many US companies outside the scope. In addition, under the proposal, some of the requirements would be delayed. As the Alert reports, for example, the package includes “a separate proposal to fast-track a two-year ‘stop-the-clock’ delay to CSRD reporting requirements applicable to those companies in scope from financial year 2025 onwards.”
The Alert discusses key takeaways from the proposed Omnibus package and its potential impact for US companies. Don’t miss this Alert!
