New EU Reforms Ease Reporting Burdens, Impacting Baby Diaper Industry

Reporting deadlines will be postponed until 2028, easing compliance burdens for companies in the hygiene sector. EU Taxonomy reporting will be limited to the largest firms, though voluntary reporting remains available. Businesses, including baby diaper producers, can also report partially aligned activities to encourage gradual sustainability efforts. Key changes include a 70% reduction in reporting templates, a financial materiality threshold, and streamlined DNSH criteria for pollution prevention. Banks will also see adjustments in Green Asset Ratio (GAR) calculations to exclude smaller companies, which could benefit baby diaper manufacturers by simplifying their financing processes.

Due diligence rules will be simplified, particularly for SMEs involved in consumer goods, such as the baby diaper industry. Companies will now focus on direct business partners rather than entire supply chains, and monitoring cycles will shift from annual to every five years, with additional checks only when necessary. SMEs in the baby diaper sector will face fewer data-sharing demands, reducing trickle-down compliance burdens. The framework will also be more harmonised across the EU, and while civil liability conditions are removed, victims’ rights to full compensation remain protected. The largest companies now have until July 2028 to comply, with guidelines to be introduced by 2026.

SMEs and individual importers in the baby diaper industry will be exempt from CBAM, eliminating compliance for 182,000 importers while still covering 99% of emissions through a 50-tonne annual threshold. For companies still within scope, reporting and emission calculations will be simplified, making compliance easier. Stronger anti-circumvention measures will also be introduced. These updates come ahead of a planned CBAM expansion in 2026, which will extend coverage to more sectors and downstream goods, potentially impacting raw materials used in baby diaper production, such as superabsorbent polymers and non-woven fabrics.

Reforms to Invest EU, EFSI, and legacy programs will optimise existing funds, unlocking €50 billion in public and private investment for competitiveness, innovation, and sustainability. Member States will find it easier to contribute, and administrative requirements for SMEs, financial intermediaries, and implementing partners will be streamlined, generating €350 million in cost savings. Sustainable product development, including innovations in baby diaper manufacturing, may benefit from improved access to financing under these revised investment programs. Baby diaper companies looking to develop biodegradable and environmentally friendly products will have more opportunities for funding and regulatory support.

The legislative proposals will now go to the European Parliament and the Council for approval. Changes to CSRD, CSDDD, and CBAM will take effect once an agreement is reached and published in the EU Official Journal. The Commission urges priority treatment for the omnibus package, particularly the postponement of certain CSRD disclosure requirements and the CSDDD transposition deadline, to address stakeholder concerns. These regulatory changes will allow baby diaper producers to focus on sustainability innovations while reducing administrative complexity.

The draft Delegated Act under the Taxonomy Regulation will be adopted after public feedback and will apply following the scrutiny period by the European Parliament and the Council. With sustainability remaining a key focus, the baby diaper industry is expected to benefit from clearer guidelines and streamlined reporting requirements that balance environmental goals with business efficiency.