EU Reaches Political Agreement on Omnibus I to Simplify CSRD and CSDDD

Sustainability reporting

According to the European Parliament, CSRD reporting will apply to EU companies with on average more than 1,000 employees and net annual turnover above €450 million. For non-EU companies the threshold is €450 million of turnover generated in the EU. Sector-specific reporting becomes voluntary, and companies with fewer than 1,000 employees may refuse requests for information that go beyond the voluntary standards. The Commission will set up a digital portal with templates and guidance on EU and national reporting requirements.

Due diligence

The CSDDD will apply only to EU companies with more than 5,000 employees and net annual turnover above €1.5 billion, and to non-EU companies with EU turnover above €1.5 billion. Companies in scope will take a risk-based approach across their chain of activities and should avoid requesting unnecessary information from businesses outside scope. They will no longer have to adopt a transition plan aligning their business model with the Paris Agreement. Liability for non-compliance is set at national rather than EU level, with fines of up to 3% of net worldwide turnover.

Background and next steps

The Commission proposed Omnibus I on 26 February 2025. In April 2025 the co-legislators adopted a separate stop-the-clock measure postponing CSRD reporting for companies that had not yet started and delaying the first phase of the CSDDD. The provisional agreement must now be formally approved by the Parliament and the Council. The amendments will take effect on the day of their publication in the Official Journal of the European Union.

Companies that prepared for reporting under the original thresholds should reassess whether they remain in scope, and groups with EU subsidiaries should review how the new turnover tests apply to them.

Sources

• European Commission press corner: Commission welcomes political agreement on Omnibus I simplification package
• European Parliament: Deal on updated sustainability reporting and due diligence rules