{"id":4327,"date":"2025-04-04T08:00:37","date_gmt":"2025-04-04T06:00:37","guid":{"rendered":"https:\/\/sustainaccount.com\/?p=4327"},"modified":"2025-04-07T10:39:49","modified_gmt":"2025-04-07T08:39:49","slug":"eu-omnibus-and-physical-climate-risk","status":"publish","type":"post","link":"https:\/\/sustainaccount.com\/de\/eu-omnibus-and-physical-climate-risk\/","title":{"rendered":"EU Omnibus and Climate Risk"},"content":{"rendered":"
EU Omnibus and Climate Risk: What Is Changing and Why Engaging Now Remains a Strategic Advantage<\/strong><\/p> On April 3, 2025, the European Parliament approved the \u201cStop-the-Clock\u201d proposal, a key element of the European Commission\u2019s Omnibus Simplification Package. Once formally adopted by the Council and published in the Official Journal of the European Union, the directive will enter into force, and Member States will be required to transpose it into national law by the end of 2025.<\/p> The decision represents a significant adjustment in the timeline and scope of EU sustainability reporting obligations. While some aspects are now moving forward, others \u2013 such as broader revisions to reporting content \u2013 remain under negotiation. For companies assessing physical climate risks, this regulatory update introduces both short-term relief and long-term strategic considerations.<\/p> What Has Been Approved: The \u201cStop-the-Clock\u201d Decision<\/strong><\/p> The approved regulation includes:<\/p> What Is Still Pending<\/strong><\/p> Several aspects of the Omnibus package and related sustainability legislation remain under negotiation or development, including:<\/p> Implications for Physical Climate Risk Assessments<\/strong><\/p> While the delay in reporting requirements may suggest a temporary deprioritization, the strategic rationale for conducting physical climate risk assessments<\/strong> remains unchanged, and arguably stronger. Here\u2019s why:<\/p> Heatwaves, floods, wildfires, and other extreme weather events are intensifying across Europe. These hazards directly affect:<\/p> Regardless of reporting requirements, understanding and preparing for these impacts is critical for risk management.<\/p> While the \u201cStop-the-Clock\u201d proposal affects timelines for CSRD and ESRS obligations, it does not impact the application of the EU Taxonomy Regulation, which remains fully in force. Companies subject to the Taxonomy must continue to assess and disclose their alignment with the environmental objectives defined in the regulation, including climate change mitigation and climate change adaptation.<\/p> For these objectives, the Taxonomy requires companies to conduct climate risk and vulnerability assessments at the activity level. These assessments are essential to determine whether an activity substantially contributes to adaptation or mitigation and whether it meets the \u201cDo No Significant Harm\u201d criteria.<\/p> As such, companies aiming to maintain or demonstrate Taxonomy-aligned investments or activities must continue to develop and apply robust physical climate risk methodologies, regardless of delays in other regulatory frameworks.<\/p> Capital markets continue to expect transparency on climate risk. Many institutional investors and banks, especially those aligned with the Task Force on Climate-related Financial Disclosures (TCFD) or ISSB standards, seek detailed insights on both transition and physical risks.<\/p> Even for companies now outside CSRD’s mandatory scope, disclosure pressure from capital providers remains unchanged.<\/p> Many companies exempt from direct reporting may still face indirect reporting demands from customers, especially large corporates and multinationals that must meet CSRD or other global standards.<\/p> Being prepared on climate risk enhances a company\u2019s credibility, reliability, and competitiveness in commercial relationships.<\/p> The postponed timelines offer a strategic window to:<\/p> This is an opportunity to prepare thoroughly and proactively, rather than delay action.<\/strong><\/p> Conclusion<\/strong><\/p> While the EU\u2019s \u201cStop-the-Clock\u201d decision delays some climate reporting obligations, it does not eliminate the strategic importance of physical climate risk preparedness. Stakeholders \u2013 from regulators to investors \u2013 still expect clarity on climate exposure and resilience. Moreover, EU Taxonomy compliance continues to require rigorous physical climate risk assessments, reinforcing their role as a critical part of corporate sustainability and financial disclosure.<\/p> Companies that act now \u2013 rather than wait \u2013 will be better positioned to comply, stay competitive, adapt to a climate-disrupted future, and reduce long-term costs.<\/p> How are your assets exposed to climate risks?<\/strong><\/p> Visit our website<\/a> or connect with us on LinkedIn<\/a> to learn more about our resilience solutions.<\/p> <\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":" EU Omnibus and Physical Climate Risk: What Is Changing and Why Engaging Now Remains a Strategic Advantage<\/p>","protected":false},"author":9,"featured_media":3620,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[9,1],"tags":[127,53,125,124,51,123,126,128,79],"class_list":["post-4327","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-climaterisk","category-insights","tag-climateresilence","tag-climaterisk","tag-climateriskassessment","tag-esrs","tag-eutaxonomy","tag-omnibus","tag-physicalclimaterisk","tag-stop-the-clock","tag-csrd"],"yoast_head":"\n