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