EU finalises ‘Omnibus’ overhaul of sustainability reporting rules
After months of debate, the European Union has formally signed off on its much-discussed ‘Omnibus I’ package, completing the legislative process to simplify corporate sustainability reporting and due diligence requirements. The Council of the European Union gave its final approval to amendments affecting both the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive, narrowing their scope and aiming to reduce reporting burdens while maintaining core transparency requirements.
Among the key changes are higher thresholds for companies in scope. Under the revised CSRD, requirements will apply primarily to companies with more than 1,000 employees and over €450 million in annual turnover, while the CS3D due diligence rules will focus on companies with more than 5,000 employees and €1.5 billion in turnover. The package also includes transition relief for some companies that had been expected to report earlier and extends the timeline for implementing due diligence obligations.
The final green light is the latest chapter in this evolving regulatory framework that has already driven major developments in structured sustainability disclosures. While the simplification effort narrows scope, the long-term direction of travel is for increasingly standardised, structured and digitally accessible sustainability data.
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