The first comprehensive package of measures, known as Omnibus 1, was presented in February 2025. After 10 months, it has reached its likely final form. On 16 December 2025, the provisional agreement between the European Parliament and the Council was approved by the European Parliament and is now awaiting approval by the Council.
Omnibus 1 focuses on simplifying and reducing the administrative burden for companies in the area of sustainability, commonly referred to as ESG. The package includes amendments to two directives: the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD). The objective is to strengthen the EU’s competitiveness.
Key changes to the CSRD – sustainability reporting
- Mandatory sustainability reporting will apply to companies with more than 1,000 employees and net annual turnover exceeding EUR 450 million (compared to the current threshold of 250 employees and EUR 450 million).
- Reporting requirements will be simplified, and sector-specific reporting standards will become voluntary.
- Smaller companies with fewer than 1,000 employees will be protected from having reporting obligations passed on to them. Their business partners will not be allowed to request more information than what is set out in the voluntary standards.
- The Commission will establish a digital portal providing access to templates and guidance on both EU and national reporting requirements, making compliance easier for companies.
Key changes to the CSDDD – due diligence obligations
- Due diligence obligations will apply only to large companies with more than 5,000 employees and net annual turnover exceeding EUR 1.5 billion.
- A risk-based approach should be prioritised instead of systematically requesting information from small business partners.
- The obligation to prepare a transition plan is abolished.
- Due diligence rules will start to apply from July 2029.
Following approval by the Council, the legislative act will be published in the Official Journal of the EU and will enter into force on the 20th day after publication.
In December, the Commission also published Guidance on the EU Taxonomy, linked to the simplification of obligations in this area as well (Taxonomy Omnibus Delegated Act). The guidance is presented in a frequently asked questions (FAQ) format and can be accessed HERE.
Sources:
https://www.europarl.europa.eu/news/en/press-room/20251211IPR32164/simplified-sustainability-reporting-and-due-diligence-rules-for-businesses
https://ec.europa.eu/commission/presscorner/detail/en/mex_25_3129
