On Nov. 13th, the European Parliament Plenary voted on the Omnibus I file – the legislative package proposing simplifications to the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD).
The European People’s Party (EPP) formed an alliance with far-right parties to weaken the EU’s sustainability framework — the most significant coordination to date between the center-right and the far-right factions. The outcome marks a setback for sustainable and accountable policymaking in Europe, with key changes including the following amendments:
- Raising the CSRD reporting threshold to 1,750 employees and €450 million turnover, which would significantly narrow the number of companies in scope
- Deleting requirements for climate transition plans
- Removing civil liability provisions and the review clause intended to revisit them
Next steps: the Omnibus I file now moves into trilogue negotiations between the European Commission, the Parliament and the Council of the EU to finalize a common position. Both the Commission and the Council have tabled more ambitious positions than the one adopted by Parliament, so negotiations are expected to be extensive.
Originally, the trilogue was meant to conclude this year, but given the current vote, timing is now uncertain.
Companies are seeking clarity, especially those planning to apply the ESRS — whether on a mandatory or voluntary basis — as it has been initially recognized as one of the most comprehensive and “gold standard” sustainability reporting frameworks. The goal is to meet not only regulatory requirements but also broader sustainability reporting needs, from regional IFRS implementations to domain-specific commitments such as climate targets, through one integrated report.
While the rules may appear lighter on paper, expectations for traceability, auditability and data confidence remain as stringent as ever. Especially for companies with complex, multi-tier supply chains and significant climate risks, it is becoming increasingly important to move from reactive reporting to integrated sustainability systems that enable proactive risk management and robust transition planning. Many companies are now refining their Scope 3 methodologies and advancing their transition plans — not only to meet regulatory requirements but also to strengthen climate targets, demonstrate credible progress and position themselves as leaders in meaningful sustainability action. Building systems that deliver reliable, verifiable data has become essential — a relevance reinforced by the emerging regional implementation of the IFRS Sustainability Standards, ongoing SBTi updates and new frameworks such as the ISO Net Zero guidelines.
