Sustainability Reporting: EU Proposes Deferral of Obligations

The European Commission has adopted a package of new legislative proposals called Omnibus I, which aim to cut red tape and simplify EU rules for businesses.

In the recent Competitiveness Compass, covered in the last Compass here, the Commission set out its vision to make the EU’s economy more prosperous and competitive, building on the recommendations of the Draghi report.

Sustainability and due diligence reporting

The Omnibus I measures focus on making sustainability reporting more accessible and efficient, simplifying human rights and environmental due diligence obligations to support responsible business practices.

To do so, the legislative package proposes targeted amendments to the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD).

The European Parliament and Council of the EU are now considering the proposals for adoption. The first key decision on the co-legislators’ agenda concerns the timeline of the reporting obligations.

Postponements agreed

Under the CSRD framework currently in force, companies in scope would have to publish their first sustainability report already by the end of 2025, based on financial year 2024.

However, the Commission is now proposing to postpone the date of application of corporate sustainability reporting (by two years) and due diligence requirements (by one year).

With the aim of ensuring legal certainty for companies, the Council of the EU and European Parliament agreed to fast-track the decision on obligation deadlines by voting in favour of an urgent procedure.

Both Parliament and Council have already adopted the Commission’s deferral proposal without amendments, and have therefore agreed to delay the application of the CSRD and the CSDDD.

Next steps

Only formal Council endorsement is needed for the changes to take effect. This merely formal sign-off is expected by June 2025 at the latest. An agreement on the remaining elements of the Omnibus package is expected by December 2025.

Despite these changes, Landbell Group has decided to continue its sustainability reporting on a voluntary basis.

This will allow the Group to manage the financial and non-financial aspects of its impacts, complementing the efforts already undertaken by its corporate sustainability initiative.

It will also address the growing demand from customers for CSRD-related disclosures and mean the company is better placed to keep and attract talent motivated by corporate sustainability.

Read Landbell Group’s CEO’s views on the topic here.

Textiles: one step closer to mandatory EPR

On 18 March, the Committee on Environment, Public Health and Food Safety (ENVI) of the European Parliament officially adopted the trilogue agreement on the revision of the Waste Framework Directive (WFD).

This adoption confirms the consolidated text resulting from negotiations between the Parliament, Council and Commission and brings the EU one step closer to introducing mandatory extended producer responsibility (EPR) for textiles.

Textiles EPR

The revised Directive requires producers of textiles, textile-related and footwear products to finance the collection, sorting, re-use and recycling of their products, including unsold goods.

The revised law also establishes clear roles for producer responsibility organisations (PROs) and mandates public registers for producer compliance across Member States.

It recognises social enterprises as essential partners in collection and reuse, and introduces fee modulation to incentivise eco-design, circularity and reductions in microplastic pollution.

Other key aspects include collection targets, fibre-to-fibre recycling and local reuse, as well as stricter sorting and documentation requirements for exports to prevent illegal waste shipments.

Next steps

The Directive is expected to be tabled for Plenary vote in April, either during the mini-Plenary (10–11 April) or the main session (22–25 April).

This reform is a critical piece of the EU’s Circular Economy Action Plan and Strategy for Sustainable Textiles, aiming to significantly increase textile sustainability and reduce environmental impacts throughout the value chain.

EU Battery Regulation: key changes by 2026 in Germany

As a result of the EU Battery Regulation, Germany will implement important changes for battery producers in the coming months.

Authorised representative

The first step is the introduction of an authorised representative to assist foreign producers in implementing specific national regulations and for sharing certain obligations with the manufacturer to ensure collection and information requirements are met.

Foreign producers with an existing registration are currently required to appoint a branch in Germany or to register with an authorised representative by 11 August 2025.

Landbell Group will offer the relevant contracts to its existing clients.

Assignment to a producer responsibility organisation

From 18 August 2025, and by 15 January 2026 at the latest, all active registrations with the batteries register, Stiftung EAR, must be assigned to a producer responsibility organisation (PRO), which will then handle the nationwide collection and disposal of the respective waste batteries.

Previously, assigning a PRO for portable batteries was required but, in the future, this will also apply to the other categories:

  • light means of transport (LMT) batteries
  • electric vehicle batteries
  • industrial batteries, and
  • starting, lighting and ignition (SLI) batteries

The three former battery types now become five categories of batteries.

Chemical composition

From August 2025 until 15 January 2026, all producers must also submit the chemical composition of their batteries and their Tax Identification Numbers to the Stiftung EAR portal.

Industrial battery registrations must also be transferred into the new categories above.

Companies must complete all changes by 16 January 2026, as incomplete registrations will be deleted.

Landbell Group’s extensive experience providing an authorised representative service for WEEE, and from operating PROs, will carefully guide existing and new clients through this process.

Up-to-date information is always available here, along with a form for enquiries.

Batteries: amendment to the European List of Waste

The European Commission has updated the European List of Waste (ELW) to introduce new classifications for battery-related waste.

On 6 March, the Commission announced the adoption of a Delegated Decision amending Decision 2000/532/EC, revising waste classifications in line with evolving battery chemistries and regulatory frameworks.

Impact

These changes, which take effect in September 2026, will impact manufacturers, recyclers and waste management firms across the EU. They will strengthen traceability, safety and sustainability in battery disposal and recycling.

The updated classification reflects the increasing diversity of battery chemistries, particularly for lithium-based, sodium-based and nickel-based batteries.

It also aligns with the Batteries Regulation (EU) 2023/1542, ensuring consistency with new environmental and safety standards.

One significant change is the reclassification of alkaline batteries as hazardous waste, following updated scientific assessments of their chemical composition.

Additionally, a new hazardous waste code for lithium-based batteries is introduced, specifically targeting separately collected fractions of municipal waste.

Implications

These amendments will have far-reaching implications for the industry, requiring companies to:

  • update waste handling procedures
  • ensure proper classification of hazardous materials, and
  • comply with stricter waste shipment regulations

Next steps

With only 18 months to adjust, stakeholders must prepare for operational and financial impacts.

The changes are a key step in advancing the EU Circular Economy agenda, promoting more efficient resource use and safer recycling practices.