Omnibus I, results and new agreements on CSRD: simplified sustainability reporting

What is Omnibus?

“Omnibus” is a legislative approach used by the European Commission to amend and simplify a group of related EU rules in one coordinated package, with the explicit aim of reducing administrative burden. In this case, Omnibus I focuses on simplifying sustainability reporting and due diligence requirements, including the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD).

The Commission published its Omnibus I package on 26 February 2025 as part of its broader simplification agenda..

Parliamentary approval and a new agreement for CSRD

On 16 December 2025, the European Parliament approved a provisional agreement on updated sustainability reporting and due diligence rules. This vote followed the provisional agreement reached between the Council presidency and Parliament negotiators on 9 December 2025. The political intent behind the package is clear. It is designed to reduce administrative burden, narrow the scope of companies covered, and support EU competitiveness, while preserving the core objective of credible sustainability transparency.

What changes for CSRD under 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 technical advice including draft ESRS standards to the European Commission, which will now process them.

How this impacts corporate reporting in practice

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 

Following the December 2025 political agreement and the Council’s final approval on 24 February 2026, attention shifts to implementation: publication and entry-into-force mechanics, and Member State transposition into national law. In parallel, ESRS simplification proceeds through the delegated act process, supported by EFRAG’s technical advice.