Commission proposes Omnibus I: CSRD scope cut by about 80% and CSDDD simplified
On 26 February 2025 the European Commission proposed its first 'Omnibus' simplification package. It would take about 80% of companies out of the Corporate Sustainability Reporting Directive, delay reporting for later waves by two years, narrow due diligence under the CSDDD, and cut EU Taxonomy reporting. The Commission estimated annual savings of about €6.3 billion.
The European Commission adopted its first 'Omnibus' packages on 26 February 2025. Its stated aim is to cut administrative burdens by at least 25%, and by at least 35% for SMEs.
Sustainability reporting (CSRD and Taxonomy)
- Remove about 80% of companies from the CSRD's scope, concentrating reporting on the largest companies (more than 1,000 employees).
- Limit what in-scope companies can demand from smaller companies in their value chains.
- Stop the clock: postpone by two years, to 2028, reporting for companies due to start in 2026 or 2027.
- Limit Taxonomy reporting to the largest companies, add a financial materiality threshold and cut reporting templates by about 70%.
Due diligence (CSDDD)
- Focus systematic due diligence on direct business partners, and assess partners every five years instead of annually.
- Limit the information large companies can request from SMEs and small mid-caps.
- Remove the EU-wide civil liability conditions, leaving liability to national regimes.
- Delay application for the largest companies by a year, to 26 July 2028.
Who is affected
EU companies preparing for CSRD and CSDDD, non-EU groups with large EU operations, and their suppliers.
Later developments
The 'stop-the-clock' directive was adopted fast and published in April 2025. The substantive Omnibus I changes were agreed in December 2025 and adopted by the Council on 24 February 2026, with a narrower final scope than the Commission proposed. See our coverage of the final Omnibus I.