EU Parliament Adopts Position on Omnibus I: What It Means for CSRD and CSDDD

The European Parliament has adopted its position on the Omnibus I simplification package, marking a significant turning point in the ongoing reform of the EU’s sustainability reporting and due diligence framework. After weeks of negotiations, and in the absence of a majority among the centrist political groups, the European People’s Party (EPP) secured passage of a reduced compromise with the support of right-leaning parties.

The adopted position introduces substantial changes to both the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD), reducing the scope and ambition of the original frameworks.

Key Changes Adopted by Parliament

CSRD: Higher Thresholds, Reduced Scope

The Parliament voted to significantly limit the number of companies covered by the CSRD. Under the adopted position, CSRD would apply only to companies with:

• 1,750 employees or more, and
• €450 million in net turnover

This represents a sharp reduction compared to the current thresholds (250 employees / €40 million turnover), and would exclude a large share of companies previously in scope.

CSDDD: Climate and Liability Provisions Weakened

The Parliament also voted to reduce key obligations under the CSDDD:

• Deletion of mandatory climate transition plans
• Limitation of EU-wide civil liability rules

These changes would lower the compliance burden but also reduce alignment with international due diligence expectations and climate governance commitments.

What Happens Next? Trilogues Begin

With the Parliament’s position adopted, the file now moves into trilogue negotiations with the:

• European Commission
• Council of the European Union

Both institutions have presented more ambitious proposals than the Parliament.
Key divergences include:

• Lower thresholds for CSRD application
• Stronger due diligence requirements
• Retention of climate transition plan obligations

This means the trilogues will need to bridge substantial gaps before a final compromise can be reached. While the initial goal was to conclude negotiations before the end of 2025, this timeline is now increasingly uncertain.

Any final agreement will require:

• Majority support in the Parliament’s plenary
• Qualified majority approval in the Council

Given the political divides revealed in recent votes, neither can be taken for granted.

What This Means for Companies

The outcome underscores the growing political fragmentation in Europe’s approach to sustainability regulation. For companies, this results in:

• Continued uncertainty regarding the future scope and requirements of CSRD and CSDDD
• Potential planning delays as key compliance obligations may change
• The need to maintain flexibility in ESG reporting and due diligence systems during the transition period

Until the trilogue concludes, companies should continue preparing based on current law, but remain alert to possible adjustments affecting applicability, timelines, and reporting depth.

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