Strategic Focus: Unpacking The EU Omnibus And Its Impact On Sustainability Software

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Executive Summary

The EU’s Corporate Sustainability Reporting Directive (CSRD) came into effect in January 2023; in the two years since, it has dominated the ESG and sustainability reporting landscape. Despite being a European regulation, the CSRD has had ripple effects globally, due to its extraterritoriality requirements, as well as its value chain impacts. However, the evolving global economic and political situation has brought new challenges and pressures, which have called into question the future of European sustainability regulations, at least in their current form. In this report, we examine the European Commission’s Omnibus Simplification Package, which calls for far-reaching simplification in the fields of sustainability reporting, sustainability due diligence and taxonomy reporting. We also examine the potential impacts on the sustainability and carbon management software markets. 

Table of contents

The EU’s Omnibus proposal will reshape the sustainability software market
The EU’s Omnibus proposal simplifies and streamlines sustainability reporting
The Omnibus proposal will reduce the urgency – but not the value – of investing in sustainability software

Table of figures

Figure 1. The European sustainability regulation ecosystem
Figure 2. Key proposals in the EU’s Omnibus Simplification Package
Figure 3. Definitions and key capabilities across sustainability software categories
Figure 4. The ordinary European legislative process and timeline
Figure 5. The impact of the Omnibus proposal on the sustainability software market

About the authors

Lily Turnbull

Senior Analyst
Lily is a Senior Analyst in the Verdantix ESG & Sustainability practice. Her current research agenda focuses on ESG and sustainability services, ESG assurance, and sustainable finance. Lily joined Verdantix in 2022 and has previous experience in social impact research and ESG software development. She holds an MSc in Women, Peace & Security from the London School of Economics and Political Science and a BA in Theology & Religion from the University of Bristol.

Isobel McPartlin

Analyst
Isobel is an Analyst in the Verdantix Net Zero & Climate Risk practice. Prior to joining Verdantix, she completed an MSc in Environment Politics and Society at UCL, specializing in energy transitions and the politics of climate change, with a particular interest in net zero narratives. She holds a BA in Geography from the University of Cambridge.

Kim Knickle

Research Director, ESG & Sustainability
Kimberly Knickle is Research Director of the ESG & Sustainability practice at Verdantix. Her research areas encompass ESG regulations and reporting, ESG risk, supply chain sustainability, circular economy, social impact, and sustainable finance. Kim has worked for more than 20 years in the IT industry, providing research and analysis to help companies invest wisely in new technologies. Before joining the analyst industry, she held various roles in IT services, engineering and product safety testing, beginning her career at Underwriters Laboratories, Inc. Kim holds an MBA from Boston University and a BS in Electrical Engineering from Cornell.

Ryan Skinner

Research Director, Net Zero & Climate Risk
Ryan is the Research Director for the Verdantix Net Zero & Climate Risk practice. He guides the research team to develop compelling research at the intersection of net zero strategies, carbon management, climate risk and technology. Prior to joining Verdantix, Ryan was a principal analyst at Forrester Research, where he initiated the research into ESG data and analytics offerings. He also has extensive experience of helping software companies with their messaging, positioning, market and technology strategies. Ryan studied at Duke University, the University of Manchester and the University of Oslo, and speaks Norwegian fluently.

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