CSRD Update and EU Omnibus Proposal: Impacts on Construction and Madaster’s Solutions

Blogs 25 mar 2025

As of last month, the European Commission announced a comprehensive package of proposals designed to simplify EU rules and create a more favourable business environment. These proposals are part of a broader effort to boost competitiveness, unlock additional investment capacity, and support the growth and innovation of businesses across Europe.

The Omnibus Package brings together several key updates, including important revisions to the Corporate Sustainability Reporting Directive (CSRD), and focuses on streamlining sustainability reporting, due diligence requirements, and regulations such as the EU Taxonomy and carbon border adjustment mechanisms. This shift is particularly relevant for the construction sector, where sustainability is increasingly becoming a critical focus.

In this post, we’ll explore the recent updates to the CSRD, how they impact the construction industry, and how Madaster can help businesses stay compliant while optimizing their sustainability efforts.

Background on the CSRD

The CSRD, which came into force on January 5, 2023, requires large companies and all listed companies to report on the environmental and social impact of their activities. These reports must be audited for accuracy, which increases the transparency and accountability of business operations across Europe. The CSRD aims to create a standardized framework for sustainability reporting, helping organizations identify and disclose their impact on both people and the environment.

In the construction sector, this is particularly relevant due to the industry’s resource-intensive nature and the growing focus on circularity, carbon management, and environmental stewardship.

Learn more about what the CSRD entails in our blog post: Familiar with the new reporting requirement on sustainability?

The Latest CSRD updates and their impact

The EU Commission’s new Omnibus Package outlines several changes to the CSRD, particularly focused on reducing the reporting burden on smaller companies, aligning the CSRD thresholds with other directives like the Corporate Sustainability Due Diligence Directive (CSDDD) and EU Taxonomy, and pushing back some deadlines. Here’s what this means for businesses:

Lower reporting thresholds: Companies with more than 1,000 employees and either more than €50 million in sales or €25 million in total assets will still need to comply with CSRD reporting requirements. The threshold for reporting is now much higher, meaning smaller firms, especially those with fewer than 1,000 employees, are largely exempt from these obligations.

Simplified reporting for SMEs: Smaller companies, including many in the construction supply chain, will no longer be required to provide extensive data for larger organizations’ sustainability reports, lightening the load. This simplification also reduces complexity in reporting, a key aspect of the Omnibus package aimed at supporting SMEs and small mid-caps (SMCs).

Postponed deadlines: Companies that were set to begin reporting in 2026 or 2027 now have an additional two years to prepare. This delay provides businesses with more time to get their processes in place, particularly around compliance with both the CSRD and the EU Taxonomy.

Streamlined data collection: The revised CSRD also reduces the complexity of supply chain reporting. Companies will no longer need to assess every link in the chain but rather focus on direct business partners, easing the data collection burden.

These changes are part of the broader efforts to reduce complexity and enhance the EU’s business environment, helping companies grow and innovate while ensuring they meet sustainability objectives.

How Madaster supports CSRD compliance

Madaster’s platform is specifically designed to help organizations in the construction industry meet evolving sustainability reporting standards, including those outlined in the CSRD. Madaster enables companies to effortlessly comply with CSRD and EU Taxonomy requirements by providing a comprehensive and integrated system for managing material data, carbon assessments, and circular economy contributions.

1. Seamless ESG Integration

Madaster provides businesses with clear, data-driven insights into the environmental performance of their assets. The platform visualizes material reuse through digital material passports, showing recovery potential and circular value. Carbon reduction is tracked via lifecycle assessments (LCAs), detailing embodied carbon impacts per asset. Resource efficiency metrics highlight material flows, waste minimization, and alignment with sustainability reporting requirements, including the general CSRD framework, as sector-specific guidance for construction is still evolving. These insights enable informed decision-making, ensuring sustainability efforts are both actionable and transparent.

2. Comprehensive Reporting Tools

Madaster enables businesses to generate reports that meet certain material topic requirements within the CSRD and EU Taxonomy by providing structured data on key sustainability metrics. Reports include detailed assessments of embodied carbon, tracking reductions across the asset lifecycle. Circularity insights outline material reuse potential and end-of-life recovery strategies. Compliance indicators highlight alignment with the regulatory frameworks, ensuring transparency in sustainability reporting.

3. Enhance Corporate Value

Madaster integrates CSRD and ESG standards by providing structured, audit-ready sustainability data that aligns with regulatory frameworks. The platform automates carbon footprint calculations, circularity assessments, and material passports, ensuring compliance with certain CSRD disclosure requirements such as Climate Change (E1) and Circular Economy (E5). Businesses can track resource efficiency, embodied carbon, and lifecycle impacts of their assets through standardized reporting tools. By offering clear, actionable insights, Madaster helps companies embed sustainability into their operations, enhancing transparency for investors and stakeholders while strengthening their competitive edge in a market that prioritizes responsible business practices.

4. Simplified Data Management

Madaster makes compliance data easily accessible through an intuitive dashboard and automated reporting tools. Users can visualize carbon emissions, material analysis, and waste management metrics in structured, exportable formats aligned with CSRD standards. The platform generates ready-to-use compliance reports, integrating lifecycle data from BIM models and material passports. Customizable dashboards allow businesses to track sustainability performance of their assets in real time, reducing administrative workload while ensuring efficient, transparent reporting.

What’s next for the construction industry?

The European Commission’s Omnibus proposals aim to reduce the complexity of EU regulations, particularly for larger companies with a significant environmental impact. These changes seek to streamline sustainability reporting, due diligence, and access to sustainable finance, all while supporting the clean transition of businesses at every level.

For smaller businesses, particularly in the construction sector, the latest updates to the CSRD offer some relief by simplifying sustainability reporting requirements. Companies already embracing circular economy principles can now align their efforts more efficiently with broader European climate goals.

Madaster is here to support you through these changes. The platform simplifies compliance, enhances transparency, and helps businesses position themselves for success in a sustainability-driven market. As EU regulations are revised, Madaster offers a clear and straightforward path, enabling you to focus on delivering sustainable, high-quality construction projects.

Ready to simplify your sustainability reporting? Contact us today and ensure your business stays ahead of regulatory changes while contributing to a more sustainable future.