Omnibus

Malta currently falls under the scope of the Non-Financial Reporting Directive (NFRD), as the Corporate Sustainability Reporting Directive (CSRD) has not yet been transposed into national law. This means that only companies meeting the NFRD criteria are currently required to report on non-financial matters.

However, following the adoption of the “Stop-the-Clock” principle under the EU Omnibus Package, all EU Member States—including Malta—are expected to transpose the revised CSRD timeline into national legislation by 31 December 2025. This delay provides companies with additional time to prepare for the expanded reporting requirements under the CSRD.

As of mid-2025, Malta has not yet published draft legislation to transpose the CSRD. However, Maltese companies that meet the CSRD thresholds should prepare for compliance, as the directive will apply once transposed.

However, following the adoption of the “Stop-the-Clock” principle under the EU Omnibus Package, all EU Member States—including Malta—are expected to transpose the revised CSRD timeline into national legislation by 31 December 2025. This delay provides companies with additional time to prepare for the expanded reporting requirements under the CSRD.

Following the adoption of the “Stop-the-Clock” principle, all EU Member States—including Malta—must transpose the revised CSRD timeline into national law by 31 December 2025. This ensures alignment with the updated reporting deadlines introduced under the Omnibus Package.

At present, the Omnibus proposal is still under discussion at EU level, particularly regarding reporting thresholds and the scope of non-financial disclosures. Final details will determine how these requirements are implemented locally.

Even if not yet legally required, businesses should focus on stability and preparedness:

• Stay on course with CSRD readiness and due-diligence programmes.
• Begin internal assessments using the double materiality framework
• Review ESRS drafts and prepare systems for future reporting
• Invest in reliable data systems and governance, which remain critical under any scenario.
• Expect continued scrutiny from investors, lenders and supply-chain partners on ESG performance, regardless of shifting legal thresholds.

This principle requires companies to report:

• Financial materiality: How sustainability issues affect the company’s financial performance.
• Impact materiality: How the company’s activities affect society and the environment.
  This remains a core requirement under the CSRD, even with the Omnibus simplifications.

Most SMEs are excluded from mandatory CSRD reporting. However, a Voluntary SME Reporting Standard (VSME) is being developed to help SMEs align with sustainability goals without excessive burden.