Omnibus I results: simplified sustainability reporting

What is Omnibus?

Omnibus is a legislative approach used by the European Commission to simplify related EU rules and reduce administrative burden. The first Omnibus package was published on 26 February 2025.

Omnibus I focuses on simplifying sustainability reporting and due diligence requirements, including the Corporate Sustainability Reporting Directive (CSRD).

Parliamentary approval

On Tuesday, 16 December 2025, the European Parliament approved a provisional agreement on updated sustainability reporting and due diligence rules, marking a key step forward in the Commission’s Omnibus I simplification package.

Overall, the changes are intended to reduce administrative burden, limit the scope of companies covered, and strengthen EU competitiveness, while keeping the core objectives of sustainability transparency in place.

What is changing with Omnibus I

The revised rules significantly narrow the scope of mandatory sustainability reporting:

• EU companies with more than 1,000 employees and net annual turnover above €450 million will be required to report.
• Non-EU companies will be in scope if they have more than €450 million in EU turnover, and their EU subsidiaries or branches generate over €200 million in turnover.
• Some companies that have already started reporting under CSRD will fall outside the new scope and may continue reporting with ESRS standards on a voluntary basis (where local legislation permits).

CSRD in-scope companies will report using ESRS standards, and their sustainability reports will be subject to limited assurance.

However, the reporting requirements will be simplified. Companies will need to report less information, sector-specific reporting will be removed or voluntary, and smaller companies will not face additional reporting demands beyond the voluntary VSME standards.

EFRAG has submitted the simplified ESRS standards to the European Commission, which will now process them.

How does this impact the corporate reporting world

As a result, fewer companies will fall within the scope of CSRD, reporting will start later than previously expected, and the tagging timeline remains open, alongside a reduced number of datapoints to report. The focus now turns to the implementation phase, including how the new thresholds are reflected in national legislation, the timelines across EU Member States, and when sustainability data can be expected in XBRL format.

This also leaves an open question: what will companies that now fall just below the threshold do? Some may choose to report on a voluntary basis (ESRS, VSME or other framework) to meet stakeholder expectations, while others may step back from sustainability reporting altogether.

Next steps and background

The agreement was adopted by the European Parliament with 428 votes in favour, 218 against and 17 abstentions. It still requires formal approval by the Council (legal details may evolve) and subsequent implementation by Member States into national law.

Once adopted, the directive will enter into force twenty days after publication in the Official Journal of the European Union.