Developments related to Omnibus, ESRS Review and other measures

Italian Sustainable Investment Forum

Entry into force of the Omnibus package. Opinions published on simplified ESRS

The process of simplifying the European sustainable finance regulatory framework continues, with significant developments over the past few weeks.

Developments related to the Omnibus package

On 18 March 2026, Directive (EU) 2026/470 officially entered into force, amending the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD). The directive introduces significant simplifications to the rules on sustainability reporting and due diligence. Member States will have twelve months to transpose the directive into their respective national legal frameworks. Regarding the CSRD, companies that had already begun preparing their reports starting with the 2024 financial year are granted a transitional phase covering the 2025 and 2026 financial years. The new requirements will apply starting from the 2027 financial year for undertakings within the scope of application. Transposition of the CSDDD is postponed to 26 July 2028, with compliance obligations for companies due by July 2029.

ESRS Review

Continuing with the theme of simplification, several opinions have been published on the proposed revision of the European Sustainability Reporting Standards (ESRS) issued by the European Financial Reporting Advisory Group (EFRAG) at the end of 2025.

In the opinion of the European Central Bank (ECB) staff, the significant simplification of the standards introduced by EFRAG is welcomed, as it makes the ESRS more focused and more applicable. However, three critical issues are identified: reduced data availability and comparability, misalignment with international reporting standards, and the need for greater clarity in the financial sector. According to ECB staff, the ESRS revision must maintain a balance between simplification and information quality, ensuring transparency and reliable, comparable data necessary for financial risk management, financial stability, and the reallocation of capital towards the sustainable transition.

Similarly, the European Supervisory Authorities (ESAs) emphasise that the simplification proposed by EFRAG may reduce data availability. They criticise the extension of the “undue cost or effort” clause to all metrics, unlike international standards. Furthermore, the ESAs raise concerns about the introduction of exemptions for quantitative information on expected financial impacts. Finally, they suggest the need to introduce time limits for certain permanent exemptions.

Shareholder Rights Directive (SRD II) Review

In addition, a consultation has been launched to gather views and experiences from stakeholders on the possible revision of the Shareholder Rights Directive (SRD II), expected in Q4 2026. The consultation focuses on the challenges and shortcomings of the current directive, the definition of “shareholder,” the disclosure of engagement policies and investment strategies, and the potential development of a European Stewardship Code. The consultation is open until 6 May 2026.

Industrial Accelerator Act

Finally, the European Commission has presented the Industrial Accelerator Act (IAA), a proposed Regulation aimed at supporting the competitiveness of energy-intensive industries and strategic industrial sectors (steel, aluminium, cement, and certain clean technologies), to restore manufacturing to 20% of the EU’s gross value added by 2035. In particular, when public funds are deployed through public procurement, auctions, tax incentives, or state aid in support of these strategic sectors, a minimum share of Made in Europe content will be required, including components and value added generated within the Single Market. The regulation will also set limits on foreign investment. Finally, the IAA aims to streamline and digitalise authorisation procedures for industrial projects.