What Does the Omnibus Package Mean for EU Taxonomy Reporting?

Reporting obligations narrowed to the largest companies

One of the most notable changes is a major narrowing of the group of companies subject to mandatory Taxonomy reporting. Under the new rules, only the largest companies will be required to report – specifically those that:

• employ more than 1,000 people, and

• have annual turnover exceeding €450 million.

This will reduce the number of obligated companies by approximately 80%.

Materiality threshold and simplified templates

In addition, the Omnibus reforms further narrow reporting obligations by introducing a 10 % materiality threshold, which allows companies to exclude non-material activities from disclosure.

Reporting templates are also being simplified, with data requirements reduced by up to 70%. The goal is to make reporting more focused, more practical, and less resource-intensive.

Refocusing on the taxonomy’s original purpose

This shift is important because it brings the EU Taxonomy back to its foundational purpose: guiding investment and business decisions toward genuinely sustainable activities.

Crucially, these changes help return the EU Taxonomy to its intended role:
👉 not just a compliance exercise, but a practical tool for identifying and developing sustainable business activities.

At its heart, the Taxonomy provides a science-based, consistent framework that enables:

• companies to assess and improve the sustainability of their operations

• investors to find genuinely green and responsible investments

By streamlining the administrative side of reporting, the reform encourages companies to focus more on real-world environmental actions – not just paperwork.

Financial institutions will continue to drive sustainability expectations

At the same time, financial market participants such as banks and asset managers still have EU Taxonomy reporting obligations through other regulations like the Sustainable Finance Disclosure Regulation (SFDR) and the Green Asset Ratio.

As a result, financiers will continue to ask companies to demonstrate whether their operations and investments are EU Taxonomy eligible or aligned, ensuring that sustainability data remains a key part of business–finance relationships going forward.

Because businesses depend heavily on these financiers for capital and investment, they will need to be increasingly motivated to focus on material, genuine actions to align their operations with the EU Taxonomy.

A new phase for the EU Taxonomy – how should companies prepare?

The Omnibus reform doesn’t reduce the relevance of the EU Taxonomy – quite the opposite.

It reinforces its role as a strategic tool for advancing the green transition.
It frees up resources for companies to focus on sustainability in practice.
And it raises the bar for aligning business strategy with long-term environmental goals.

Now more than ever, companies need to understand where they stand within the Taxonomy framework – and how to move forward in a way that meets both regulatory expectations and investor demands.

Read also our previous blog posts on the Omnibus topic:

• EU omnibus sustainability proposal
• What Happens if the Omnibus Proposal is Implemented? Two Scenarios for Companies