The EU Council Has Finally Approved the Omnibus I Package: What Changes for ESG Reporting and What It Means for Ukraine
On 24 February, the Council of the European Union formally approved the Omnibus I package, finalising a year-long process of simplifying ESG reporting requirements. The legislation has now cleared all three EU institutions: the European Commission, the European Parliament, and the Council. The vote came on a day of particular weight: the Council observed a minute of silence to mark the anniversary of Russia's full-scale invasion of Ukraine and voted to approve financial support for our country.
The core change concerns which companies will be subject to mandatory reporting. Under the updated Corporate Sustainability Reporting Directive (CSRD) and ESRS standards, only companies with at least 1,000 employees and an annual turnover exceeding €450 million will be required to comply. The thresholds under the Corporate Sustainability Due Diligence Directive (CSDDD) still go further: mandatory reporting will apply solely to companies with more than 5,000 employees or revenues above €1.5 billion.
"We had already calculated last autumn how many Ukrainian companies would fall under the new criteria. The figure came to around 330. These are the companies for which ESG reporting will become mandatory once Ukraine transposes these requirements into national legislation. The threshold has shifted considerably: previously the benchmark was 250 employees; now it is 1,000 employees and a turnover of €450 million. For everyone else, reporting remains voluntary — though any company may choose to apply the ESRS standards," explains Oleksiy Yatsyuk, ESG Expert at the Green Transition Office under the Ministry of Economy, Environment and Agriculture of Ukraine.
A detailed analysis of the various scenarios and their implications for Ukrainian businesses was published by the Green Transition Office in the report ESG Standards and Requirements in the EU and Ukraine — Changes and What to Expect.
Following official publication in the EU Official Journal, the European Commission will have up to six months to adopt the ESRS standards by delegated act. The full text of the approved document is available on the Council of the EU website. The Green Transition Office will track the process and keep businesses and stakeholders informed.
The Green Transition Office is an independent advisory body under the Ministry of Economy of Ukraine that helps to implement reforms in the field of green transition, energy and climate policy of Ukraine. The Green Transition Office operates with the financial support of the UK International Development and is implemented by Dixi Group.
Published on