Sustainability, reporting and due diligence

The Commission is rolling out a series of Omnibus packages aimed at reducing administrative burden while preserving core policy objectives. Omnibus I, in force from March 2026, resets key transposition timelines for CSRD and CSDDD and points towards more harmonised due diligence standards, with EU level guidance expected by July 2026. Alongside this, proposed amendments to the EU Batteries Regulation and the Packaging and Packaging Waste Regulation (PPWR) reflect a broader trend towards fewer reporting obligations, clearer exemptions and greater consistency across regimes.

At the same time, simplification does not mean delay. Several implementation milestones are approaching. Most PPWR obligations will apply from August 2026, the Commission’s review of the EU Deforestation Regulation is expected by April 2026, and guidance on the EU Forced Labour Regulation must be published by June 2026. This makes the current transition window critical for reassessing compliance strategies, reporting readiness and supply chain governance.

Competitiveness and industrial policy

In parallel, competitiveness has moved firmly to the centre of the EU agenda. Under the One Europe One Market initiative, the Commission aims to complete the Single Market by 2027 by removing internal barriers and enabling companies to scale more easily across borders. Flagship initiatives include the proposed twenty eighth regime for innovative companies, a review of EU merger control rules to support European champions, and a broader clean up of the acquis to ensure future legislation is simple by design.

This shift is reinforced by the Industrial Accelerator Act, presented on 4 March 2026. The proposal focuses on faster permitting, demand side measures such as made in Europe criteria, and new conditions on foreign investment and access to public procurement. While negotiations are expected to continue into 2027, the direction of travel is already clear. Sustainability, industrial capacity and strategic autonomy are becoming increasingly interconnected.

What this means

For companies operating across the EU, the message is twofold. Expect a more streamlined regulatory framework, but one that places sharper expectations on how sustainability and due diligence are embedded into business models. With multiple implementation deadlines approaching, the next twelve to twenty-four months will be decisive for compliance, strategic positioning and cross border growth.

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