MESSAGES FROM US

Dear readers,

In this week’s bulletin, we discuss the changes introduced by the European Union with the Omnibus Package. We try to find the answer to the question of whether the new regulations carry the risk of putting the environmental and social responsibilities of the business world on the back burner.

We also touch upon the important findings of the Carbon Majors Database report and look at the evidence of a well-known fact. Some large companies have a very, very high share of carbon emissions and they need to take responsibility for ensuring sustainability.

Stay sustainable…

ÖZGÜN ÇINAR, CEO

ESG NEWS

  • Nearly 95% of countries have missed a UN deadline to submit new climate pledges for 2035, Carbon Brief analysis shows. DETAIL
  • Climate change drove weeks of crop-withering temperatures last year in the West African countries that underpin the world’s chocolate supply, hitting harvests and likely further stoking record prices, researchers said. DETAIL
  • In the United States, the Center for Biological Diversity estimates that the average wedding produces approximately 63 metric tons of CO2 emissions. DETAIL In the United Kingdom, the Sustainable Wedding Alliance reports that the average wedding emits around 14.5 tons of CO2, which is comparable to the annual carbon footprint of three households. DETAIL
  • According to the Times, BP’s chief executive – under pressure from an activist investor – has pledged to “fundamentally reset” the company’s strategy, which is expected to involve a formal ditching of its target to cut oil and gas output and a further scaling back of its renewables projects. DETAIL
  • Carbon emissions from permafrost “may pose a considerable risk” to climate mitigation efforts, “even if net-zero and negative emissions are achieved”, according to a new study published in Science Advances. DETAIL
  • Turkey’s first “Climate Law Proposal” was presented to the Presidency of the Grand National Assembly of Turkey. The proposal, which aims to combat climate change with a green growth climate and a net zero emission budget, includes activities to reduce greenhouse emissions and adapt to climate change, planning and implementation tools, revenues, permits and inspections, and the procedures of the legal and institutional framework related to these, which are essential in combating climate change. DETAIL
  • The Kültepe excavations, where archaeological findings and documents dating the history of Kayseri back 6 thousand years were unearthed, also shed light on important information about the history of Anatolia. The research showed that the climate change seen in northern Syria 4,200 years ago was also experienced in Anatolia. DETAIL
  • Disposable plastic containers could be leaching dangerous chemicals into your takeaway food, potentially increasing your risk of cardiovascular disease. DETAIL

🍃 GREEN COLUMN🍃

THE EU’S NEW OMNIBUS PACKAGE: A CONVENIENCE FOR COMPANIES OR A THREAT TO SUSTAINABILITY?

What does the Omnibus Package mean? Is it a relief for some companies, or a step back for sustainability goals? Let’s evaluate the impacts of this regulatory change on the business world and climate targets.

European businesses have long complained about the complexity of sustainability reporting processes. Especially small and medium-sized enterprises (SMEs) have been struggling with increasing bureaucratic burdens and costs. The European Commission, taking these criticisms into account, proposed a new regulation under the name “Omnibus Simplification Package.” Announced on February 26, 2025, this package aims to reduce the administrative burdens on companies and make the investment environment in Europe more attractive. However, these changes also raise serious concerns.

One of the most significant changes brought by the Omnibus Package is the narrowing of the scope of the Corporate Sustainability Reporting Directive (CSRD). Under the current regulation, companies with more than 250 employees were required to report on sustainability. However, with the new regulation, this threshold has been raised to 1,000 employees. This change means that about 80% of companies will be exempt from reporting requirements. Now, only companies with more than 1,000 employees and either €50 million in revenue or €25 million in balance sheet size are required to submit sustainability reports. ESG (Environmental, Social, and Governance) reporting has been made entirely voluntary for SMEs. Additionally, the reporting processes for large businesses have been delayed by two years. The European Commission aims to reduce administrative burdens by 25% and by 35% for SMEs with these changes.

Another change involves the flexibilities made in the Corporate Sustainability Due Diligence Directive (CSDDD). Under previous regulations, companies were required to analyze all environmental and social impacts within their supply chains. However, the Omnibus Package has narrowed this obligation to only cover direct suppliers. Additionally, companies with more than 500 employees will only need to assess their supply chain impacts once every five years. This could mean less oversight of human rights violations in global supply chains. Critics argue that companies might ignore environmental and social issues in their indirect suppliers.

The EU Taxonomy Regulation also underwent significant changes as part of the simplification. This regulation was designed to help investors understand which economic activities are truly sustainable. However, under the new regulation, companies with more than 1,000 employees and a turnover of up to €450 million will have voluntary taxonomy reporting. Additionally, the data points used in sustainability reporting have been reduced by 70%. The European Commission aims to facilitate companies’ access to green finance with these regulations. However, the question remains whether softening the taxonomy regulations is the right step to achieve the Paris Climate Agreement and European Green Deal targets.

Meanwhile, the European Commission’s Carbon Border Adjustment Mechanism (CBAM), part of its carbon emission reduction goals, has also been affected by the new regulations. Previously, carbon reporting requirements applied to all importers. However, for small-scale firms importing less than 50 tons annually, the reporting requirements have been completely removed. This exempts 90% of small-scale importers from CBAM obligations. For large companies, the declaration, calculation, and reporting processes have been simplified. While this provides significant ease to importing companies, the exclusion of small-scale carbon emissions reporting could contradict Europe’s climate goals.

It is hard to say that these changes have been welcomed by all sectors of the business world. Some large companies have emphasized in a joint call to the European Commission that reporting standards should not be overly relaxed. According to these companies, these changes in sustainability reporting could disrupt the green transition process and damage trust between companies in the long run. On the other hand, investors and financial institutions are concerned that it will become more difficult to identify companies that comply with sustainability criteria.

All of these changes are defended by the European Commission as measures to reduce companies’ administrative costs and improve the investment environment in Europe. According to calculations, the new regulations are expected to save €6.3 billion annually and open the way for €50 billion in public and private sector investment.

In conclusion, while the Omnibus Package offers significant conveniences to companies, it also brings new discussions about sustainability. These new regulations seem likely to mark a critical turning point for the business world.

DAMLA GÜNALP, SUSTAINABILITY ASSISTANT SPECIALIST

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