The European Parliament has formally approved the Omnibus I simplification package, marking a major shift in the regulatory landscape for sustainability reporting and due diligence across the EU. After years of evolving requirements and shifting timelines, many organizations have been waiting for clearer direction. With this approval, they finally have it.
Omnibus I streamlines key components of the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD), narrowing the scope of who must report and simplifying what must be disclosed.
What’s Changing?
Here are the most notable updates:
- CSRD scope narrowed
Reporting now applies primarily to companies with 1,000+ employees and €450M+ turnover, significantly reducing the number of organizations required to comply.
- Reduced burden for smaller firms
SMEs are largely excluded and protected from indirect data-collection demands from larger customers in their value chains.
- Simplified disclosure requirements
On November 28, EFRAG released the revised ESRS exposure drafts, which substantially reduce the depth and complexity of CSRD-related disclosures.
- CSDDD applies only to the largest companies
Due diligence obligations now focus primarily on companies with 5,000+ employees and €1.5B+ turnover.
- Climate transition plans no longer mandatory under CSDDD
However, transition plans remain a requirement under the simplified ESRS exposure drafts within CSRD. Meanwhile, CSDDD due diligence obligations are pushed back to 2029.
What Does This Mean for Companies?
For smaller organizations, Omnibus I offers welcome relief. Reduced scope and lighter obligations translate to fewer administrative burdens and lower compliance costs. Many businesses—including suppliers deep in global value chains—will no longer be pulled into complex reporting exercises.
For larger companies, however, the debate continues. While simplification improves operational feasibility, some stakeholders argue that scaling back requirements could diminish transparency into material environmental and social impacts—particularly in industries with high risk exposure.
But Above All: Clarity
Whether viewed as an easing of unnecessary pressure or a step back in accountability, the approval of Omnibus I delivers something companies of all sizes have been asking for: certainty.
With firmer rules, sustainability, risk, and compliance teams can finally move beyond speculation and begin building reliable, long-term plans. In a landscape still marked by geopolitical volatility, supply chain disruption, and rising stakeholder expectations, clearer regulatory footing is a meaningful win.
Companies now have a better foundation to strengthen their reporting maturity, improve data quality, and prepare for the next phase of sustainability regulation—whatever form it ultimately takes.
